The Motley Foolยท2025-08-10 07:12Core Viewpoint - Amazon is currently experiencing slower growth in its cloud computing division compared to competitors, but it is expected to outperform Nvidia and Palantir by 2030 due to its dual growth engines in cloud computing and e-commerce [2][13]. Cloud Computing Performance - Amazon Web Services (AWS) reported a revenue growth of 17.5% to $30.9 billion in Q2, with an annualized rate of $123.6 billion, which is significantly slower than Microsoft Azure's 34% growth [4][5]. - AWS maintains a strong relationship with Anthropic, which is valued at nearly $200 billion and has committed billions to AWS, potentially accelerating revenue growth for the division [6][7]. - AWS's operating income was $43 billion over the last 12 months and is projected to approach $100 billion by 2030 [7]. E-commerce and Retail Growth - North American e-commerce sales grew by 11% last quarter to $100 billion, totaling $404 billion over the last 12 months, while international sales reached $150 billion [9]. - Advertising services are driving a 22% growth, contributing to margin expansion, with North American retail operating margins at 7% and international at 3.4% [10]. - Future investments in projects like Alexa and Project Kuiper are expected to enhance profit margins, with North American margins projected to reach at least 15% and international margins at 10% by 2030 [11]. Competitive Positioning - Amazon has two significant growth engines: cloud computing and e-commerce, allowing for substantial market expansion despite current revenues exceeding $670 billion [14]. - Amazon is reducing its reliance on Nvidia by increasing the capacity of its own Trainium chip, which is expected to take market share from Nvidia [15]. - Amazon's forward price-to-earnings ratio is 33, significantly lower than Nvidia's 41 and Palantir's 278, making it a more attractive investment option [15][16].