The Motley Foolยท2025-03-17 22:30Core Insights - The growth of artificial intelligence (AI) has significantly contributed to stock market highs, with potential for substantial returns for investors who capitalize on current volatility [1] - AI is projected to boost global GDP by 14% by 2030, adding over $15 trillion to the economy [2] Company Analysis: Amazon - Amazon is a leading retail brand with over 200 million Prime members, and it is also a major player in AI, which enhances its growth potential [3] - Amazon Web Services (AWS) is the top cloud service provider, with a 19% year-over-year revenue increase in Q4, driven by strong demand for AI-related services [4] - AI investments are also enhancing Amazon's online retail, with tools like Rufus and Amazon Lens aimed at increasing sales from its $247 billion online revenue [5] - Amazon's net income reached $59 billion on $638 billion total revenue, with projected earnings growth at a compound annual rate of 21% [6] Company Analysis: Alphabet (Google) - Alphabet's Google and YouTube are benefiting from AI, showing efficient returns from AI investments in digital advertising and cloud services [7] - Google Search generated $54 billion of Alphabet's $96 billion total revenue in Q4, with advertising contributing to a net profit of $100 billion on $350 billion revenue in 2024 [8] - Despite economic challenges, Alphabet's revenue grew 10% in 2022, as digital ad spending continues to rise [9] - AI integration across services, including the Gemini AI model, enhances user experience and increases advertising spending [10] - Google Cloud experienced 30% year-over-year revenue growth in Q4, driven by demand for AI-powered services, with earnings expected to grow at an annualized rate of 17% [11]