Prediction: 1 AI Stock Being Underrated by Wall Street That Could Be Worth More Than Nvidia in 2030

Core Viewpoint - Amazon is currently undervalued as an AI stock compared to Nvidia, with potential to surpass Nvidia in market capitalization by 2030 due to its growth in AI-related revenue and profitability [2][15][16] Group 1: Amazon's AI Potential - Amazon's stock has increased by 57% over the last five years, significantly lower than Nvidia's 1,350% gain, and has underperformed compared to the S&P 500's 101% increase [2] - Amazon Web Services (AWS) is the largest cloud computing partner of Anthropic, a rapidly growing AI startup that has raised over $10 billion for AI workloads, which will likely boost AWS revenue [4][5] - AWS is developing its own chips, called Trainium, to reduce reliance on Nvidia and improve profitability, which could negatively impact Nvidia's sales [6] Group 2: E-commerce and AI Integration - Amazon's e-commerce and digital media sectors are also leveraging AI, with generative AI tools helping small businesses create advertisements, thus increasing advertising revenue and profit margins [9] - Efficiency gains from AI and robotics in warehouses are expected to reduce labor costs and improve operational efficiency, contributing to higher profit margins in the long term [10][11] Group 3: Financial Comparisons - Amazon's EBIT is currently at $77 billion, while Nvidia's is at $96 billion, indicating both companies have experienced rapid growth [13] - Amazon's revenue over the last 12 months was $670 billion with an EBIT margin of 11.5%, projected to grow to $1 trillion with a 15% EBIT margin by 2030, leading to $150 billion in earnings [15]