Amazon's AI Business Passed a $25 Billion Run Rate. Where Does That Put the Stock in 5 Years?
One of the fastest-growing businesses inside the company more than doubled over the past year. What does five more years of that do to a $2.8 trillion valuation?
Overview
Amazon(NASDAQ:AMZN) put a number on its artificial intelligence (AI) business in its July 30 earnings report, and the number deserves more attention than it got. The AI business inside Amazon Web Services (AWS) has passed a $25 billion annual revenue run rate, management said, and it is growing at triple-digit percentages year over year.
(Amazon's custom chip business separately passed the same mark. The company hasn't said how much the two overlap.)
Details
A business of that size, and growing that fast, inside a company priced on ordinary growth assumptions, can decide a five-year return on its own. What could it make the stock worth by 2031?
Source
Originally published at www.fool.com.