Thiel Macro Bets Big on Amazon's AI-Fueled Growth

Peter Thiel's investment company, Thiel Macro, recently added Amazon to its portfolio. The tech giant has seen a 560% increase in value over the past decade and is now one of the largest players in cloud computing.

The company's use of artificial intelligence (AI) is driving growth in both revenue and efficiency. AI infrastructure investments are paying off, with AWS revenue increasing by 37% in the second quarter. Amazon Web Services (AWS) is expected to generate $1 trillion in revenue by 2035, implying 21% annual growth.

CEO Andy Jassy believes that as revenue growth outpaces incremental capital expenditure growth, the resulting revenue, free cash flow, and return on invested capital will be 'very compelling'. Wall Street analysts agree, with a median 12-month target price of $330 per share, implying a 32% upside from its current price.