By Anthony Di Pizio
Publication Date: 2025-12-29 18:17:00
Amazon is making a habit of beating Wall Street’s expectations, so its stock might be undervalued right now.
Nine publicly traded American companies are worth $1 trillion or more, but only four have graduated into the exclusive $3 trillion club so far: Nvidia, Apple, Alphabet, and Microsoft.
I think Amazon (AMZN 0.38%) could join them by the end of 2026 thanks to the accelerating revenue growth in its cloud computing division, and the surging profits in its legacy e-commerce business. The company has a market capitalization of $2.48 trillion as I write this, so investors who buy its stock today could earn a 21% return over the next year if it does cross the $3 trillion milestone.
Read on, and let’s consider Amazon’s growth prospects in the year ahead.
Image source: Getty Images.
All eyes on Amazon Web Services
Amazon’s potential pathway to the $3 trillion club next year starts with its industry-leading cloud computing platform, Amazon Web Services (AWS). It used to be a place where businesses would simply store data and host their critical digital applications, but it has evolved to become the center of Amazon’s artificial intelligence (AI) strategy.
AWS operates state-of-the-art data centers and it rents the computing capacity to AI developers who don’t have the financial resources to build their own infrastructure. These data centers are filled with advanced AI chips from suppliers like Nvidia, but Amazon also designed its own chips called Inferentia and Trainium. Top…
