2 Artificial Intelligence (AI) Stocks to Buy Before They Soar to $3 Trillion, According to Certain Wall Street Analysts

Amazon - Amazon has a strong position in three growing markets: e-commerce, retail media, and cloud services, with 41% of U.S. retail e-commerce sales and 77% of domestic retail ad spending [3][4] - Amazon Web Services (AWS) holds a 29% market share in infrastructure and platform services, positioning it well to capitalize on the growing demand for AI infrastructure [4] - The company is developing around 1,000 generative AI tools to enhance productivity in its retail operations, which is expected to improve retail margins in the coming years [5] - Analysts project a 44% upside for Amazon's stock, with a target price of $305 per share, implying a market value of$3.2 trillion [7] - Wall Street expects Amazon's earnings to grow at 10% annually through 2026, making the current valuation of 34 times earnings appear expensive, but historical performance suggests the stock price may be reasonable [8] Alphabet - Alphabet's investment thesis is based on opportunities in digital advertising and cloud services, being the largest ad tech company globally, with digital ad spending expected to grow at 15% annually through 2030 [10] - The company is successfully adapting to the shift towards AI tools in internet search, with its generative AI application Gemini being the second-most downloaded AI chatbot last year [11] - Alphabet is the third-largest public cloud provider, accounting for 12% of infrastructure and platform services spending, and is recognized as a leader in large language models and AI infrastructure [12] - The global autonomous ride-sharing market could exceed $2 trillion over the next decade, with Alphabet's Waymo currently providing 250,000 driverless rides per week, a fivefold increase from last year [13] - Analysts estimate a 45$250 per share, implying a market value of $3 trillion [7] - Wall Street projects Alphabet's adjusted earnings to increase at 7% annually through 2026, making the current valuation of 19 times sales appear somewhat expensive, but historical performance indicates the valuation could be reasonable if trends continue [15]