Amazon Set to Join Trillion-Dollar Club with Nvidia, Apple, and Alphabet

Amazon, the world's largest company by revenue, generated over $716 billion in sales last year. Despite its strengths, Amazon stock has underperformed the broader market in recent years, rising only 47% over the past five years.

The S&P 500 and Nasdaq Composite have seen higher returns during this time period. However, a prediction suggests that Amazon could join Nvidia, Apple, and Alphabet as members of the $4 trillion club before 2029.

To hit a market cap of at least $4 trillion, Amazon's stock would need to increase by roughly 45.5%. This translates to average annual growth of 20.6% over the next two years.

Amazon's strong results in its AWS cloud infrastructure segment and e-commerce-heavy North America segment have led some to believe that the company is underappreciated as an AI stock.