Meet the Supercharged Artificial Intelligence (AI) Growth Stock That Could Join Apple, Nvidia, and Microsoft in the $3 Trillion Club by 2027

The most obvious way the company will benefit from advances in generative AI is by hosting AI functionality in the cloud. One of the biggest stumbling blocks to adopting AI is having access to the data necessary to create generative AI models. Training the large language models (LLMs) that underpin AI requires at least 1 billion data points, which means only companies with access to magnitudes of data — like Amazon — can create top-shelf AI models.

Amazon Web Services (AWS) is the world’s largest cloud infrastructure service and continues to deliver AI capabilities to its cloud customers at scale. Jassy said (emphasis mine), “In the past 18 months, AWS has released nearly twice as many machine learning and generative AI features as the other leading cloud providers combined.”

Furthermore, the company offers one of the largest repositories of widely used AI models available on its Amazon Bedrock platform. These include LLMs from AI21 Labs, Anthropic, Cohere, Meta Platforms, Mistal AI, Stability AI, and — of course — Amazon’s home-grown AI models.

Finally, for price-conscious cloud customers, Amazon has developed its own custom AI chips — Trainium and Inferentia — that help those on a budget reap the benefits of AI.

The breadth of its offerings will no doubt convince many of its customers to join the AI revolution, benefiting Amazon in the process. AWS generated 17% of Amazon’s revenue and 62% of its operating profit so far this year. By providing the largest selection of AI offerings, the company is fueling growth in its biggest cash cow.

While there are more, these are just a few examples that illustrate the many ways Amazon is using AI to supercharge its results and take its business to the next level. These initiatives will play a part in helping secure its membership in the $3 trillion club.

Amazon currently has a market cap of roughly $2.39 trillion (as of this writing). This implies it will take stock price gains of roughly 25% to push its value to $3 trillion. Wall Street is forecasting that Amazon will generate revenue of $638 billion in 2024, giving it a forward price-to-sales (P/S) ratio of roughly 3.4. Assuming its P/S remains constant, Amazon would have to grow its revenue to roughly $799 billion annually to support a $3 trillion market cap.

Wall Street is currently forecasting sales growth for Amazon of 11% annually over the next five years. If the company can achieve this growth rate, it could achieve a $3 trillion market cap as early as 2027. It’s worth noting that Amazon has grown its annual revenue by roughly 442% over the past decade, so Wall Street’s expectations could well be conservative.

Furthermore, at roughly 3.4 times forward sales, Amazon is a bargain compared to Nvidia and Apple, which carry forward multiples of 17 and 8, respectively.

That’s an attractive price to pay for a company with so many ways to profit from the accelerating adoption of AI.

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Danny Vena has positions in Amazon, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Amazon, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

Meet the Supercharged Artificial Intelligence (AI) Growth Stock That Could Join Apple, Nvidia, and Microsoft in the $3 Trillion Club by 2027 was originally published by The Motley Fool