All everyone wants to talk about is Nvidia. The computer chip company is now the largest stock in the world by market capitalization, quickly joining the $3 trillion club along with Apple, Microsoft, and Alphabet. Investors are betting with their wallets that the rising demand for artificial intelligence (AI) computing power will drive huge earnings growth for the likes of Nvidia.
They are forgetting one company that will be an underrated beneficiary of AI growth: Amazon (NASDAQ: AMZN). The company has a cloud and computer chip deal with start-up Anthropic, as well as numerous ways to benefit from AI in its media business.
At a market cap of $2.5 trillion today, I think it is an easy hurdle for Amazon to surpass a $3 trillion market cap by sometime in 2026, if not by the end of this year.