Amazon and Palantir Ride AI Market Wave with Explosive Growth

The artificial intelligence market is expanding rapidly as more companies use AI applications to accelerate, automate, and optimize their operations. According to Grand View Research, the AI market could still expand at a 30.6% compound annual growth rate (CAGR) from 2026 to 2033.

Two high-growth AI software plays that could easily turn a $5,000 investment into more over the next few years are Amazon and Palantir. Amazon is a linchpin of the AI market through its Amazon Web Services (AWS), which hosts Bedrock and SageMaker platforms for developing generative AI applications and training custom AI models.

AWS also produces first-party AI chips, and Amazon owns roughly a fifth of Anthropic, one of the world's fastest-growing AI companies. Anthropic must use AWS as its primary cloud infrastructure provider and purchase Amazon's Trainium AI chips under their deal.

Palantir is another company building the software backbone of the AI revolution with its Gotham platform for U.S. government agencies and Foundry platform for commercial customers. It creates a 'digital twin' of a client's organization across computing platforms and uses its Ontology data model to unify data into an easy-to-query stream of information.

From 2025 to 2028, analysts expect Amazon's revenue and earnings per share (EPS) to grow at CAGRs of 15% and 24%, respectively. Palantir's revenue and EPS are expected to grow at CAGRs of 58% and 70%, respectively.