Could Investing $10,000 in Amazon Stock Make You a Millionaire?

The S&P 500 is falling this year, but Amazon (NASDAQ: AMZN) stock is falling even harder. It's down 14% in 2025 as investors are concerned about its fate in the new tariff era, while the S&P 500 is down only 6%. Both these numbers represent a climb back up, since the market looks like it's beginning to stabilize -- for the time being, anyway.

At the current price, Amazon stock is trading at valuations that are cheaper than they've been in more than a decade, and that includes the 2020 market crash. If you invest $10,000 in Amazon stock right now, could you become a millionaire?

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Tops in two growth industries

Amazon is No. 1 in e-commerce, with a breathtaking lead so wide that no competitor would be able to knock it down anytime soon. It accounts for around 38% of all U.S. e-commerce, with second-place Walmart accounting for only about 6%.

Amazon is constantly rolling out new plans and initiatives to keep its top spot and gain market share, anticipating consumer needs and addressing them with its first-mover's edge. Some of its recent actions include restructuring its inbound distribution channels to make sure it has products in demand at all its regional warehouses, and using robotics for faster and cheaper fulfilment processes. Management says that in a new pilot facility, orders are being processed 25% faster and are expected to drive 25% in cost savings.

E-commerce itself continues to increase as a percentage of retail sales. As it continues to add products to its platform and improve its delivery speed, Amazon presents an attractive proposition for people still waiting to switch to e-commerce.

What has been more exciting to investors lately, though, are Amazon's investments in generative artificial intelligence (AI). Amazon made headlines when it said that it's effectively expecting to spend more than $100 billion on developing its AI business this year.

The AI business is largely through the Amazon Web Services (AWS) cloud segment. CEO Andy Jassy has spoken about the huge opportunity here many times, saying it's "the biggest opportunity since cloud and probably the biggest technology shift and opportunity in business since the internet." He envisions every app being developed having a generative AI component, making this a massive growth driver for AWS.

Sales growth has slowed at Amazon, but despite the almost unmatched base of $638 billion in trailing 12-month sales, Amazon still delivered an 11% increase in sales in 2024. Profits are growing even faster, and operating income was up 86% last year.

Amazon may have some of its best days ahead of it yet as it captures this opportunity, and it could mean years of higher growth.

Tariffs could have a strong effect

In the near term, investors have been concerned about how the new tariffs could play out for Amazon's business. Sellers from China account for a high percentage of Amazon's sellers, and tacking on higher tariffs could send business down for these sellers and, therefore, for Amazon. Amazon's own online stores business will likely feel the effect on goods from China.

As a huge company with a varied supply chain and plenty of leverage, potentially more than any other U.S. company, Amazon will find a way to lessen the effect of the tariffs -- whether through rerouting its supply chain, finding new vendors, or absorbing some of the costs so it doesn't lose customers. That could mean taking a hit to the bottom line in the near term.

In the long term, whether this becomes the new normal or passes, Amazon should be just fine. All U.S. companies will have to adjust accordingly, and Amazon has some protection in its varied businesses, with segments like AWS and advertising shielding it from the potential negative effect on e-commerce.

You might never see Amazon this cheap again

The market is still worried, though, and Amazon stock is feeling the heat. It trades at a price-to-earnings (P/E) ratio of 34, just above its more than 10-year low, which it reached a few weeks ago before starting back up.

For $10,000 to become $1 million, it would need to increase 10,000%. That's a rare gain for any stock, and it does seem to be outside of what Amazon stock is capable of at this stage of its journey. The company already has a market cap of $2 trillion, and it doesn't seem reasonable to expect that kind of gain.

That doesn't mean that Amazon stock isn't an excellent value, or that you shouldn't buy it. It's a top stock with robust prospects and opportunities, and it's trading at a valuation you may not see again in the near future. On its own, investing $10,000 in Amazon stock might not be your ticket to becoming a millionaire, but Amazon stock can be a valuable part of a millionaire-maker portfolio.

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Jennifer Saibil has positions in Walmart. The Motley Fool has positions in and recommends Amazon and Walmart. The Motley Fool has a disclosure policy.