Amazon Expects AWS Annual Revenue to Hit $600 Billion in 10 Years. The Stock Looks Like a Dirt Cheap Buy

One tech company that has a lot of room to grow due to artificial intelligence (AI) is **Amazon **(AMZN +2.81%). 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.

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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.

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NASDAQ: AMZN

Amazon

Today’s Change

(2.81%) $5.78

Current Price

$211.15

Key Data Points

Market Cap

$2.2T

Day’s Range

$209.51 - $212.80

52wk Range

$161.38 - $258.60

Volume

1.5M

Avg Vol

48M

Gross Margin

50.29%

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.