Amazon (NASDAQ: AMZN) has long been a dominant player in the global cloud computing market, and its stock has been a great wealth builder for early investors. Despite the potential passing of those early days, the company still has many long-term growth drivers and incredible potential. Here's one reason why Amazon's stock could soar over the next five years.
The Shift to the Cloud
While most Americans know Amazon for its e-commerce marketplace, its greatest opportunities lie in Amazon Web Services (AWS), the company's cloud computing segment. AWS sales increased 17% year over year in the 2025 first quarter, and it was responsible for 63% of the company's total operating income.
Amazon is the largest cloud provider in the world, with 30% of the total market, ahead of Microsoft Azure's 21%, according to Statista. As the global leader, Amazon has an edge, and it's investing to keep that edge. It has developed a robust and competitive generative artificial intelligence (AI) platform that's accessible through AWS, and CEO Andy Jassy said that Amazon would spend more than $100 billion this year on AI.
Cloud Services Growth
According to analytics company Gartner, cloud spend is expected to increase 21.5% this year. It anticipates that by 2027, 90% of companies will adopt what it calls a hybrid cloud approach. With the largest platform and its massive assortment of services, Amazon is likely to capture a large percentage of that spend, reinforcing its dominant position and moat.
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Conclusion
With its strong position in the cloud computing market and its commitment to investing in AI, Amazon has many growth drivers that could lead to a surge in its stock price over the next five years. However, before investing in Amazon, consider the other top stocks recommended by The Motley Fool Stock Advisor. Don't miss out on the opportunity to potentially earn monster returns with these other top picks.
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