Amazon is projected to potentially reach a $3 trillion market cap by 2026.

From Nasdaq: 2025-01-19 06:11:00

Three $3 trillion stocks dominate the market, all in the AI sector: Apple ($3.7T), Nvidia ($3.5T), and Microsoft ($3.2T). Generative AI technology has rapidly transformed business and communication in just two years and is expected to continue shaping how people interact and work in the future.

Amazon, the fifth most valuable company globally with a market cap of $2.3 trillion, is absent from the $3 trillion club. With a 44% stock increase over the past year, Amazon is set to steadily grow and potentially reach a $3 trillion market cap by next year, driven by its AI initiatives and AWS cloud computing segment.

Amazon’s dominance extends beyond AI, with a stronghold in e-commerce, capturing 40% of the U.S. market. As e-commerce grows to 23% of total retail sales by 2027, Amazon’s logistics improvements position it to further expand its market share in various industries like advertising and healthcare.

While Amazon may not hit $3 trillion in 2025 due to modest CAGR growth rates, projections suggest it could reach this milestone by 2026. Continued strong growth, along with increasing valuation ratios, may propel Amazon towards the $3 trillion mark in the coming years.

Investors considering Amazon should note that it was not among the 10 best stocks recommended by the Motley Fool Stock Advisor team. This service has historically outperformed the S&P 500, offering insights and recommendations for investors looking to build a successful portfolio and potentially achieve significant returns.



Read more at Nasdaq: Prediction: This Top Artificial Intelligence (AI) Stock Will Join the $3 Trillion Club in 2026