Nvidia (Nvda -3.01%)) was one of the hottest actions on the market in the past five years, offering remarkable gains of 1,300% to investors during this period and considerably exceeding technology Nasdaq CompositeYields of around 100%.
The formidable advantage of the semiconductor giant can be assigned to healthy demand for its graphic processing units (GPU), which feed several applications ranging from Artificial Intelligence (AI) Cars servers with personal computers to “digital twins”. These multiple final markets have resulted in current income and profits from Nvidia in the past five years.
The NVIDIA market capitalization of 2.5 billion of dollars makes it the third company worldwide. The right part is that Nvidia could provide more gains in the future thanks to a considerable addressable market which could allow it to maintain healthy income and profits for the years to come.
However, there is another technology giant that could exceed NVIDIA in the long term, thanks to its presence on several final markets of several billion dollars. Let us compare ourselves to this name and check why it has the potential to go beyond Nvidia’s market capitalization over the next five years.
AI, cloud computing and electronic commerce could send this evolution technological giant
Amazon.com (Amzn -1.01%)) is the world fourth largest company, ranking behind Nvidia with a market capitalization of 1.9 billion of dollars. This difference places the market capitalization of Nvidia 30% larger than that of Amazon.
Amazon has underperform both Nvidia and the composite Nasdaq in the past five years, recording gains of only 45% during this period. Another thing to note is that Amazon’s shares have lost around 20% of its value so far in 2025, in a broader weakness of the stock market due to the discomfort powered by prices.
However, the recent decline means that investors now have the possibility of buying a solid technology business that can benefit from several lucrative markets during an attractive assessment. Amazon is one of the main electronic commerce companies in the world, and it also dominates the massive cloud computing market which should grow thanks to AI.
Amazon would have checked 40% of the US electronic commerce market last year. This is an excellent position to participate, because the American electronic commerce market is expected to show a healthy annual growth rate of 15% until the end of the decade, generating an annual turnover of more than 19 billions of dollars.
Above all, Amazon also expands its wings on the foreign markets of electronic commerce. For example, Germany is considered to be the largest electronic commerce market in Europe, and Amazon has already captured half of this market. Meanwhile, Amazon is also the largest player in electronic commerce in the United Kingdom, which is the second largest electronic commerce market in Europe and the third in the world.
The size of the European electronic commerce market should triple between 2024 and 2030, generating more than 10 billions of dollars in annual income after five years. Thus, the Amazon electronic commerce segment is expected to attend robust growth in the future, and a similar situation should also take place in the Cloud Computing space.
Amazon’s share at 30% of the Cloud Infrastructure Market places it well before second place Microsoftwhich has a share of 21%. The Cloud Infrastructure Market is expected to generate annual income of 2 dollars in 2030, according to Goldman Sachs. AI should play an important role in the growth of this market over the next five years, and the investment bank stresses that AI Generative could represent 10% to 15% of global cloud spending by 2030.
This massive opportunity for the final market could overse the growth of Amazon. The Amazon Services web services (AWS) cloud computing activity finished 2024 with nearly $ 108 billion in revenues, up 19% compared to the period of the previous year. The potential size of the global cloud infrastructure market and Amazon’s solid share in this space suggest that this segment could take off remarkably in the long term.
More importantly, the company has tried to reduce the cost of executing AWS AWS applications by developing personalized internalized processors, which, according to him, can offer a price advantage to performance from 30% to 40% compared to cloud instances fueled by graphics cards. Consequently, many companies have started using Amazon cloud instances fed by its personalized AI processors to execute IA workloads.
Amazon’s growth in acceleration profits should lead to an increase in stock prices
Amazon should spend strongly on capital expenses (CAPEX) this year to consolidate its IA infrastructure. More specifically, the company plans to increase its capex by 20% in 2025 to 100 billion dollars. This strong expenditure will weigh on the growth of Amazon’s profits this year, analysts expecting its net result from 14% in 2025 to $ 6.32 per share.
However, forecasts for the next two years indicate an acceleration of Amazon’s profile growth.
AMZN EPS Estimates for the current exercise data by Ycharts
Its profits could fall by 19% next year, followed by a leap larger by 25% in 2027. Assuming that Amazon can even maintain an annual growth rate of 20% in the following three years in 2027, its profits could increase to $ 16.22 per share in 2030. If the action is negotiated at 28 times the profits at that time, online with the current level of technology technology technology Nasdaq-100 Index, its stock market price could increase to $ 454.
It would be 1.6 times the Amazon stock price from the closing of the April 16 market, which could send Amazon’s market capitalization by more than 4.75 billions of dollars. This solid jump could be sufficient for Amazon to go beyond Nvidia’s market capitalization over the next five years if the latter struggle due to a drop in AI material spending or due to increased competition.
Given that Amazon is currently negotiating the long -term profits at 28 times, investors get a good deal on this subject “Magnificent Seven” The shares that I predict will exceed Nvidia’s market capitalization over the next five years.
John Mackey, former CEO of Whole Foods Market, a subsidiary of Amazon, is a member of the board of directors of Motley Fool’s. Hack Has no position in the actions mentioned. The Motley Fool has positions and recommends Amazon, Goldman Sachs Group, Microsoft and Nvidia. The Motley Fool recommends the following options: Long January 2026 Calls $ 395 on Microsoft and Court January 2026 405 $ calls Microsoft. The Word’s madman has a Disclosure policy.