In This Article:
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Morgan Stanley analysts thinks Amazon will achieve a market value of $3 trillion within 12 months, and Phillip Securities analylsts expect Alphabet to hit the same milestone.
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Amazon is using artificial intelligence to drive revenue growth and improve profitability across its e-commerce, digital advertising, and cloud computing businesses.
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Alphabet is a leader in artificial intelligence infrastructure, large language models, and machine learning platforms, but antitrust lawsuits are a significant source of potential downside.
Amazon (NASDAQ: AMZN) and Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) delivered lackluster returns in the first half of 2025. Amazon shares traded sideways, while Alphabet stock actually declined 7%. But certain Wall Street analysts expect the companies' market values to top $3 trillion in the next year. Here's what that means for shareholders:
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Brian Nowak at Morgan Stanley recently increased his target price on Amazon to $300 per share. That implies 34% upside from its current share price of $233. It also implies a market value of $3.1 trillion.
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Paul Chew at Phillip Securities has set Alphabet with a target price of $250 per share. That implies 37% upside from its current share price of $183 . It also implies a market value of $3 trillion.
Here's what investors should know about Amazon and Alphabet.
Amazon has a strong presence in three growing industries: It runs the largest e-commerce marketplace outside of China, it is the third largest ad tech company, and Amazon Web Services (AWS) is the largest cloud services company. Through 2030, Grand View Research expects online retail sales to grow at 11% annually, ad tech sales to grow at 14% annually, and cloud computing sales to grow at 20% annually.
Artificial intelligence (AI) should be a significant tailwind for Amazon. The company is using generative AI to optimize demand forecasting, inventory placement, and last-mile delivery routes, which should improve profitability. The company is also using generative AI to make warehouse robots more efficient. Additionally, Amazon has introduced AI tools that help brands plan, create, and optimize ad campaigns.
In cloud computing, AWS is primed to benefit from the AI boom simply because it is the largest public cloud as measured by customers and partners. But Morgan Stanley expects its status as the primary cloud provider for AI start-up Anthropic to become a more significant tailwind in the coming years, adding at least 1.5 percentage points to revenue growth annually.