Amazon has established itself as a leading force in global cloud computing services. With a 30% market share, AWS, its cloud computing arm, continues to be a significant growth driver. AWS sales rose 17% year over year in the first quarter of 2025, contributing 63% of Amazon's total operating income. This positions Amazon well to capitalize on the predicted 21.5% increase in cloud services this year.

While commonly known for its e-commerce, Amazon's future potential is strongly tied to AWS. The company is investing heavily in artificial intelligence to maintain its lead, with plans to spend over $100 billion on AI initiatives this year. CEO Andy Jassy emphasizes that although 85% of IT spending currently remains on-premises, the transition to cloud-based solutions is expected to accelerate over the next 10 to 20 years.

Looking ahead, Amazon's extensive range of cloud services and strategic investments are likely to enhance its market position. With Gartner predicting widespread adoption of hybrid cloud solutions by 2027, Amazon is poised to capture significant market share, potentially elevating its stock value in the next five years.