The Motley Foolยท2025-07-18 07:30Amazon - Amazon has a strong presence in three growing industries: e-commerce, ad tech, and cloud services, with expected annual growth rates of 11%, 14%, and 20% respectively through 2030 [3] - The company is leveraging generative AI to enhance demand forecasting, inventory management, and delivery efficiency, which is anticipated to improve profitability [4] - Amazon Web Services (AWS) is positioned to benefit from the AI boom, with expectations of an additional 1.5 percentage points to revenue growth annually due to its partnership with AI start-up Anthropic [5] - The current target price for Amazon is set at $300 per share, indicating a 34% upside from its current price of $233, leading to a projected market value of $3.1 trillion [7] - Wall Street anticipates Amazon's earnings to grow at 10% annually through 2026, but there is potential for growth of 15% or more based on its market position and past performance [8] Alphabet - Alphabet is the largest ad tech company globally and ranks third in cloud services, with the ad tech and cloud computing markets expected to grow at 14% and 20% annually through 2030 [9] - Despite concerns about losing market share in digital advertising due to competition and generative AI, Alphabet is integrating AI into Google Search, resulting in increased user engagement and commercial search volume [10] - Alphabet has gained market share in cloud services over the past year, recognized for its leadership in AI infrastructure and machine learning platforms [11] - The current target price for Alphabet is set at $250 per share, suggesting a 37% upside from its current price of $183, leading to a projected market value of $3 trillion [7] - Wall Street expects Alphabet's earnings to grow at 8% annually through 2026, but recent performance indicates potential for higher growth, with a 48% increase in the most recent quarter [13]