Prediction: 2 AI Stocks Will Be Worth More Than Nvidia and Palantir Technologies Combined by 2028

Group 1: Amazon - Amazon is leveraging artificial intelligence (AI) across its core businesses—retail e-commerce, digital advertising, and cloud computing—to enhance revenue and profitability, with a non-GAAP operating margin increase of nearly 2 percentage points over the past year due to efficiency gains from generative AI tools [2] - Amazon Web Services (AWS) holds a dominant 41% market share in the cloud infrastructure and platform services market, with cloud revenue growth accelerating to 20% in Q3, driven by AI demand [3] - Retail e-commerce sales are projected to grow at 10% annually through 2030, ad tech spending is expected to increase at 14% annually, and cloud services spending is forecasted to rise at 22% annually, indicating strong growth drivers for Amazon's core businesses [4] - Wall Street consensus predicts Amazon's earnings will grow at 19% annually over the next three years, making its current valuation of 34 times earnings reasonable, with potential market value reaching $5 trillion by late 2028 if it continues to beat estimates [5] - Amazon's autonomous driving subsidiary Zoox has launched a ride-sharing service and plans to expand, which could lead to a higher P/E multiple if it gains traction [6] - Amazon's current market value is $2.6 trillion, requiring a 92% increase to reach $5 trillion by 2028, implying annual returns of 24% over the next three years [7] Group 2: Alphabet - Alphabet's Google is the largest ad tech company globally, utilizing platforms like Google Search and YouTube to engage users and collect data, while introducing AI features to adapt to changes in the search landscape [8] - New AI-powered advertising tools have been introduced, allowing for personalized ads, which could enhance Google's competitive edge in the advertising market [9] - Google ranks as the third largest public cloud provider, having gained market share due to its AI capabilities, with Forrester Research recognizing it as a leader in AI infrastructure [10] - Wall Street consensus forecasts Alphabet's earnings to grow at 15% annually over the next three years, with a current valuation of 32 times earnings, suggesting a potential market value of $5 trillion by 2028 if it continues to exceed earnings estimates [11] - If Alphabet maintains its current P/E ratio of 32, its market value could reach $6.7 trillion, supported by its leading position in autonomous driving through its subsidiary Waymo [12]