Nvidia and Amazon Lead AI Market with Significant Revenue Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Nvidia's Market Dominance: Nvidia's leadership in the AI chip market has driven revenue and net income to achieve double and triple-digit growth in recent quarters, with a market cap of $4.5 trillion, showcasing its strong performance and future growth potential in the AI sector.
- Strategic Partnerships and Acquisitions: Nvidia's collaboration with Nokia to develop telecom AI and its acquisition of Groq's inferencing technology further solidify its competitive edge in AI, which is expected to drive significant growth moving forward.
- Amazon's Dual Role: Amazon serves as both a user and seller of AI, leveraging its e-commerce and cloud computing businesses, particularly AWS, which has reached an annual revenue run rate of $132 billion, highlighting its robust growth potential in the AI landscape.
- Reasonable Valuation and Growth Outlook: With a current trading price at 32 times forward earnings estimates, combined with the ongoing growth of its e-commerce and cloud businesses, Amazon stands out as an essential stock for investors looking to build an AI portfolio.
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 294.71 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.
43 Analyst Rating
40 Buy
3 Hold
0 Sell
Strong Buy
Current: 232.530
Low
250.00
Averages
294.71
High
340.00
Current: 232.530
Low
250.00
Averages
294.71
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.
