Amid its massive growth across a variety of sectors, Amazon (AMZN) is predicted to lead what Goldman Sachs has projected as a $2 trillion market. Indeed, the company has grown exponentially in its various technology offerings. However, one key industry presents unprecedented growth potential for the firm.
Over the last year, Amazon has used artificial intelligence to drive growth through cloud computing and digital advertising. The shift has clearly established the firm as one of the top AI companies in the world. Yet, it’s how the firm uses the emerging technology to continue establishing it as one of the largest corporations on the planet.
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Amazon to Outperform Tech Stocks by Leading One Key Emerging Market
There is no arguing that the last two years have been massive for Amazon. The company has flawlessly executed a shift from being the largest e-commerce company on the planet to a multi-faceted technology juggernaut. Indeed, it has positioned itself to be one of the biggest growth stocks in the coming year.
A key reason Amazon has mammoth potential entering next year is the prediction that AMZN will lead what Goldman Sachs expects to be a $2 trillion market. Specifically, the company is poised to combine the two hottest tech sectors to completely revamp its appeal.
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According to Goldman Sachs, global AI and cloud computing will reach $2 trillion over the next five years. That is excellent for Amazon considering its current positioning. The company’s Amazon Web Services (AWS) business is up 19% year over year. Moreover, it reached a revenue of $27.5 billion in Q3 of this year.
Moreover, it has spent considerable money on AI developments. The company invested $8 billion in AI startup Anthropic as it looks to compete with companies like Microsoft, as they invested $13 billion in ChatGPT developer OpenAI.
Synergy Research Group notes that Amazon currently holds a 31% market share of global AI and cloud computing. That is easily the market leader, outpacing both Microsoft Azure’s 20% and Google Cloud’s 11%, respectively. Although those companies will look to increase their market share, they will have to fend off Amazon, which has a clear head start in the space.