Cloud computing is ready up for a really robust decade. The world cloud computing market is predicted to achieve about $1.9 trillion by 2030, rising at an estimated 18.7% compound annual charge. That tempo is being pushed largely by the accelerating adoption of synthetic intelligence and machine studying throughout industries.
In consequence, the image that emerges is obvious. Enterprises are transferring extra core workloads into the cloud and are unlikely to reverse course. Demand for scalable cloud capability, due to this fact, appears to be like each massive and sturdy over a few years, relatively than like a short-lived spike.
That brings the highlight to Amazon (AMZN), which now appears to be like much more entrenched on this shift than many traders realized. The firm now controls roughly 900 cloud computing amenities throughout about 50 nations. That form of scale helps clarify its rising dominance in cloud-focused workloads.
International spending on cloud computing is ready to greater than triple over the approaching years, and Amazon already controls such a broad community of amenities. The true puzzle now could be whether or not these 900 cloud amenities, and all the pieces tied to them, are sufficient to make Amazon a purchase. Let’s dive in.
Amazon runs a worldwide e‑commerce, cloud, digital promoting, and logistics enterprise that anchors client spending and enterprise computing, supported by a roughly $2.42 trillion market capitalization.
Amazon’s worth motion reveals a 12 months‑to‑date (YTD) achieve of about 5%, a 52‑week return of 11%, and a current share worth of round $230 as of Nov. 26.
www.barchart.com
This scale comes with valuation metrics that sit nicely above sector averages, with a trailing P/E of round 31.96x and a ahead P/E of 30.79x. It compares to sector medians of roughly 15.68x and 17.18x. This premium matches a enterprise that’s now not seen as simply a web-based retailer.
The most up-to-date earnings for the third quarter, which ended Sept. 30, confirmed web gross sales rising 13% year-over-year (YoY) to about $180.2 billion. Income progress would have been roughly 12% if foreign money tailwinds have been stripped out. That adjustment nonetheless factors to broad, wholesome demand throughout Amazon’s platforms.
From there, AWS stands out as a key engine, with section gross sales climbing 20% to roughly $33 billion. That efficiency makes cloud and AI workloads central to the general funding story. The report additionally confirmed AWS’s working revenue enhancing to $11.4 billion from $10.4 billion.
On the underside line, web revenue reached roughly $21.2 billion, or $1.95 per diluted share, versus $15.3 billion and $1.43 per share a 12 months earlier. A pre‑tax achieve of about $9.5 billion from the Anthropic funding added an additional increase on high of working progress.
money era, trailing‑twelve‑month working money move rose 16% to roughly $130.7 billion. That degree of money offers Amazon ample room to maintain increasing its knowledge middle and AI capability.
Amazon is leaning exhausting into AI infrastructure with a collection of huge, very particular commitments. The headline transfer is a $38 billion, seven‑12 months partnership with OpenAI, which secures precedence entry to a whole lot of 1000’s of Nvidia’s (NVDA) most superior GPUs and the power to scale additional as workloads develop.
That form of locked‑in demand offers clearer visibility on how a lot of Amazon’s future AI capability might be spoken for. It additionally sends a sign that some of the essential AI mannequin builders is prepared to anchor lengthy‑time period compute on Amazon’s cloud.
Supporting this can be a totally different form of lengthy‑length deal on the infrastructure layer. Amazon Net Providers has signed a transformative $5.5 billion, 15‑12 months lease settlement with Cipher Mining (CIFR), aimed straight at digital infrastructure powering AI workloads relatively than simply conventional crypto mining. The size and dimension of this contract stand out in 2025, even towards a crowded backdrop of AI headlines. The construction successfully turns a part of Amazon’s future energy and actual property construct‑out right into a multi‑12 months income stream backed by a listed infrastructure accomplice.
There’s additionally a transparent regional growth piece that ties again to the place all this capability will reside. Amazon has dedicated $10 billion to increase cloud computing infrastructure in North Carolina, a venture explicitly framed as a part of the corporate’s push to seize extra AI‑pushed cloud market share.
Analyst expectations for Amazon are steadily climbing. For the present quarter ending December 2025, the common earnings estimate sits at $1.97 per share, up from $1.86 in the identical quarter final 12 months, which factors to an anticipated progress charge of about 5.91% YoY. Zooming out to the complete 12 months makes the pattern even clearer. Fiscal 2025 earnings are projected at $7.17 per share, a giant bounce from $5.53 within the prior 12 months and an estimated 29.66% YoY progress charge.
The stance from Wall Road could be very constructive for a corporation of this dimension. Among the many 57 analysts at the moment overlaying Amazon, the consensus ranking sits at “Robust Purchase.” The common 12‑month worth goal sits at $296.42, which works out to roughly 29% upside potential if you run the maths.
www.barchart.com
Amazon has laid out a fairly easy setup right here with rising earnings, heavy AI and knowledge‑middle spending, and a Road view that also sees significant upside from present ranges. With estimates pointing to nearly 30% EPS progress this 12 months and a consensus “Robust Purchase” stance from dozens of overlaying analysts, the risk-reward nonetheless appears to be like enticing for affected person traders who can deal with regular market swings.
Over the following 12 months, probably the most cheap base case is that the shares drift progressively towards these common targets relatively than breaking sharply decrease, particularly if AWS and AI numbers maintain coming in near plan.
On the date of publication, Ebube Jones didn’t have (both straight or not directly) positions in any of the securities talked about on this article. All info and knowledge on this article is solely for informational functions. This text was initially revealed on Barchart.com
Subscribe to Our Newsletter
Subscribe to our newsletter to get our newest articles instantly!
