Amazon Expects AWS Annual Revenue to Hit $600 Billion in 10 Years. The Stock Looks Like a Dirt Cheap Buy
Key Points
Amazon Web Services (AWS) has been a key growth area for Amazon in recent years.
CEO Andy Jassy recently hiked his forecast for AWS due to opportunities related to artificial intelligence (AI).
- 10 stocks we like better than Amazon ›
One tech company that has a lot of room to grow due to artificial intelligence (AI) is Amazon (NASDAQ: AMZN). The tech giant has been involved in AI for years, long before it was a big buzz term on the markets. The company's warehouses have been utilizing AI and robotics to efficiently ship packages, and its online marketplace has utilized next-gen technologies in predicting what a shopper may want to buy next.
Amazon is no stranger to AI, and a huge opportunity it has these days relates to its highly popular cloud platform, Amazon Web Services (AWS). Management recently raised its guidance for just how big that business might be in the future, and it highlights just how terrific a growth stock Amazon is right now.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Image source: Getty Images.
Amazon to generate $600 billion just from AWS
AWS is benefiting from a significant uptick in demand due to AI, and that has prompted CEO Andy Jassy to increase his guidance for the business. Previously, Jassy forecasted that AWS would bring in $300 billion in annual revenue in a decade. But now, due to AI-fueled growth, the Amazon boss believes that AWS could be bringing in as much as $600 billion in annual revenue by 2036.
Even today, there are just two companies that generate in excess of $600 billion in revenue -- Amazon and Walmart. It's already an exclusive club to begin with, and it highlights just how massive AWS has become for Amazon and how much of a growth machine it is for its business. And by the time 2036 comes around, it's possible that AWS may be generating even more revenue than Jassy expects today, with AI still being in its early innings.
Why Amazon's stock could be a steal right now
Amazon's business looks unstoppable. While its growth rate was just 14% in its most recent quarter, there are clearly plenty of growth opportunities still ahead for its operations. The company has been investing heavily in AI, including robotaxis and custom chips, and there's no doubt the business can become larger and more valuable in the future.
Given its strong financials, the stock looks like an incredible buy today, as it trades at 29 times its trailing earnings (historically, investors have paid a much higher premium for Amazon). And based on analyst projections, its forward price-to-earnings multiple is just under 26. For growth-oriented investors, Amazon can be a no-brainer buy, especially if you're planning on hanging onto the stock for the long haul.
Should you buy stock in Amazon right now?
Before you buy stock in Amazon, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Amazon wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $495,179!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,058,743!*
Now, it’s worth noting Stock Advisor’s total average return is 898% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of March 23, 2026.
David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and Walmart. The Motley Fool has a disclosure policy.
Recommended Articles
