Key Points
Amazon (NASDAQ: AMZN) has seen tremendous growth over the past 25 years, turning a $10,000 investment into over $6 million today. However, its future growth is expected to hinge on its cloud computing division, Amazon Web Services (AWS), projected to achieve significant revenue by 2030.
In 2023, Amazon plans to spend $220 billion on capital expenditures to build new data centers in response to a rising demand for accelerated computing power. AWS revenue rose 37% year-over-year in Q2, accounting for 21% of total revenue while contributing 60% to the company’s operating income.
By 2030, if AWS maintains a 30% growth rate, it could generate $483 billion in revenue, resulting in operating profits of $190 billion. This potential growth could elevate Amazon’s market cap from its current $2.8 trillion to $6.5 trillion, indicating a possible stock price of $600 per share, translating a $10,000 investment into more than $23,000.
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