Key Points
The Nasdaq has surged in recent years, driven by advancements in artificial intelligence (AI) and quantum computing. Analysts predict that the AI market, currently valued at $300 billion, could reach trillions by the end of the decade, fueling continued interest among investors.
Amazon (NASDAQ: AMZN) reported modest growth of 5% last year despite its strong positions in AI, e-commerce, and cloud computing. Its cloud unit, Amazon Web Services (AWS), is on track for an annual revenue run rate of $132 billion, benefiting significantly from AI services. Currently, Amazon’s stock is priced at about 30 times forward earnings estimates, a drop from over 50 times in previous years.
The current valuation of Amazon may attract investors seeking proven AI stocks at reasonable prices as concerns about an AI bubble grow. With AWS already showing significant AI success, Amazon is positioned to be a strong player as the Nasdaq is expected to climb through 2026.
