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Prediction: 1 Stock That Will Be Worth More Than Nvidia 5 Years From Now
AMZNAmazon(AMZN) The Motley Fool·2025-04-19 12:45

Core Viewpoint - Nvidia has experienced significant stock growth of 1,300% over the past five years, outperforming the Nasdaq Composite's 100% return, driven by strong demand for its GPUs across various applications [1][2]. Group 1: Nvidia's Performance and Market Position - Nvidia's market capitalization stands at 2.5trillion,makingitthethirdlargestcompanyglobally,withpotentialforfurthergainsduetoalargeaddressablemarket[4].ThedemandforNvidiasGPUsisfueledbyapplicationsinAI,cloudcomputing,anddigitaltwins,contributingtosubstantialrevenueandearningsgrowth[2].Group2:AmazonsCompetitivePositionAmazon,withamarketcapof2.5 trillion, making it the third-largest company globally, with potential for further gains due to a large addressable market [4]. - The demand for Nvidia's GPUs is fueled by applications in AI, cloud computing, and digital twins, contributing to substantial revenue and earnings growth [2]. Group 2: Amazon's Competitive Position - Amazon, with a market cap of 1.9 trillion, ranks as the fourth-largest company, trailing Nvidia by 30% [6]. - Despite underperforming Nvidia with a 45% stock gain over the past five years, Amazon's recent pullback presents a buying opportunity for investors [7][9]. Group 3: E-commerce and Cloud Computing Growth - Amazon controls 40% of the U.S. e-commerce market, which is projected to grow at a 15% annual rate, potentially generating over 19trillioninannualrevenuebytheendofthedecade[10].TheEuropeanecommercemarketisexpectedtotriplefrom2024to2030,providingfurthergrowthopportunitiesforAmazon[12].Group4:CloudInfrastructureMarketAmazonholdsa3019 trillion in annual revenue by the end of the decade [10]. - The European e-commerce market is expected to triple from 2024 to 2030, providing further growth opportunities for Amazon [12]. Group 4: Cloud Infrastructure Market - Amazon holds a 30% share of the cloud infrastructure market, significantly ahead of Microsoft, with the market projected to generate 2 trillion in annual revenue by 2030 [13]. - Amazon Web Services (AWS) generated nearly 108billioninrevenuein2024,reflectinga19108 billion in revenue in 2024, reflecting a 19% year-over-year increase, with expectations for continued growth driven by AI [14]. Group 5: Future Earnings Growth - Amazon plans to increase capital expenditures by 20% in 2025 to 100 billion, which may initially weigh on earnings but is expected to lead to accelerated earnings growth in subsequent years [17][18]. - Projections indicate Amazon's earnings could reach 16.22pershareby2030,potentiallyincreasingitsmarketcapto16.22 per share by 2030, potentially increasing its market cap to 4.75 trillion, surpassing Nvidia if the latter faces challenges [20][21].