Amazon and Google Cloud Drive AI Growth Potential
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: NASDAQ.COM
- Market Valuation: Nvidia and Palantir Technologies have a combined valuation of $4.9 trillion, with Amazon and Alphabet expected to surpass this figure by 2028, indicating strong growth potential in the tech sector.
- Cloud Service Growth: Amazon Web Services (AWS) holds a 41% market share in cloud infrastructure, with cloud computing revenue growth accelerating to 20% in Q3, demonstrating that AI demand is driving sustained business growth.
- Profitability Improvement: Amazon's non-GAAP operating margin increased by nearly 2 percentage points over the past year, primarily due to efficiency gains from generative AI tools in its retail business, further enhancing the company's profitability.
- Future Outlook: Retail e-commerce sales are projected to grow at 10% annually, and with the expansion plans of its autonomous driving subsidiary Zoox, Amazon is poised to reach a $5 trillion market value by 2028.
Analyst Views on AMZN
Wall Street analysts forecast AMZN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AMZN is 294.69 USD with a low forecast of 250.00 USD and a high forecast of 340.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
47 Analyst Rating
46 Buy
1 Hold
0 Sell
Strong Buy
Current: 239.160
Low
250.00
Averages
294.69
High
340.00
Current: 239.160
Low
250.00
Averages
294.69
High
340.00
About AMZN
Amazon.com, Inc. provides a range of products and services to customers. The products offered through its stores include merchandise and content it has purchased for resale and products offered by third-party sellers. The Company’s segments include North America, International and Amazon Web Services (AWS). It serves consumers through its online and physical stores and focuses on selection, price, and convenience. Customers access its offerings through its websites, mobile apps, Alexa, devices, streaming, and physically visiting its stores. It also manufactures and sells electronic devices, including Kindle, Fire tablet, Fire TV, Echo, Ring, Blink, and eero, and develops and produces media content. It serves developers and enterprises of all sizes, including start-ups, government agencies, and academic institutions, through AWS, which offers a set of on-demand technology services, including compute, storage, database, analytics, and machine learning, and other services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
