Apple’s market capitalization has declined to $3 trillion, lagging behind competitors Microsoft and Nvidia, while Amazon has surged to a market cap of $2.18 trillion. Analysts predict that Amazon could surpass Apple by the end of 2025, fueled by significant investments in artificial intelligence, particularly through its Amazon Web Services (AWS) division, which reported $29.3 billion in revenue last quarter, up 17% year-over-year.
Amazon plans to allocate $100 billion for capital expenditures this year, primarily aimed at bolstering AWS. Last year, AWS generated $42 billion in operating income, contributing over half of Amazon’s total profit. Meanwhile, Apple faces challenges, including slow revenue growth and external pressures from tariffs and antitrust lawsuits, which may impact its earnings potential.
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