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Key Points
Artificial intelligence (AI) stocks have seen significant gains, with CoreWeave surging more than 200% since its March IPO and Nvidia rising over 1,300% in three years. This trend reflects investor confidence in AI’s potential for efficiency and growth in various sectors.
Amazon, a leader in e-commerce and cloud computing, has been applying AI tools across its operations, leading to a projected annual revenue run rate of $123 billion for its AWS division. Amazon’s market value currently stands at $2.3 trillion, indicating potential for growth compared to other key players valued over $3 trillion.
Amazon trades at 33x forward earnings estimates, down from over 50x two years ago, positioning it as a likely top performer in the S&P 500 over the next decade.
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