#Gate股票畅聊季 Of the Magnificent Seven U.S. tech giants, is this the only one worth buying?

On October 29, Amazon (AMZN) CEO Andy Jassy said that no company in the world has yet reached $1 trillion in annual revenue, and that Amazon could build two trillion-dollar revenue businesses—AWS cloud computing and online retail—over the next 5 to 10 years. Some market analysts believe that among the Magnificent Seven U.S. tech giants, Amazon is positioned in both AI and retail, with both businesses accelerating their growth, making it an especially attractive investment at current valuations.

Cloud and retail drive growth, while diversified businesses expand rapidly
The cloud computing business has strong growth momentum. Third-quarter AWS revenue reached $46 billion, up 39% year over year. Jassy expects revenue growth to exceed 40% in both 2027 and 2028. At the end of the third quarter, AWS had $578 billion in signed but unfulfilled orders, double the level a year earlier. Amazon currently deploys an AI chip every 14 seconds on average, with new computing capacity coming online at roughly the pace customers can absorb it.
Sales of its in-house Trainium AI training chips and Graviton processors have continued to grow at triple-digit rates, while customer purchase commitments have increased more than 20-fold from a year earlier. In the third quarter alone, customers using its in-house chips saved more than $2 billion in costs. Amazon plans to sell Trainium chips directly to customers outside the AWS ecosystem starting at the end of 2027.
Retail growth has proved more resilient than the market expected, with ample room for further penetration. Amazon sold more than 30 billion items last year, and sales volume has continued to grow by nearly 15% so far this year. Nearly 80% of global retail transactions still take place in physical stores, leaving a clear long-term growth path for online retail.
Growth in fresh groceries and everyday essentials is about three times that of retail overall, and they now account for nearly half of sales volume. Consumers who buy groceries shop across categories about four times as often as the average user. Faster delivery continues to strengthen customer loyalty: more than 1.5 billion items were delivered to Prime members the same day or the next day in the third quarter, while orders through the rapid-delivery service Amazon Now were up tenfold from a year earlier.
Growing traffic is also driving the expansion of the advertising business, with management expecting advertising revenue to maintain high-double-digit growth this quarter. New businesses including pharmacy, internet satellites, and autonomous driving are also advancing. AI technology is also enhancing retail: in the U.S., consumers who use Alexa’s shopping feature spend 50% more per order than nonusers, while user interactions grew 570% year over year in the third quarter.

Clear advantages over peers, with valuation aligned with growth prospects
Compared with the other Magnificent Seven U.S. tech giants, Amazon’s diversified growth framework offers a differentiated advantage.
Microsoft and Alphabet are also investing heavily in AI; Meta’s cash flow turned negative as capital expenditure expanded, and its share price subsequently fell; Nvidia, Apple, and Tesla, meanwhile, rely heavily on a single core product or business. None of the other six companies has a growth path as diversified and independent as Amazon’s.
Rapid expansion comes with substantial capital investment. Amazon expects full-year capital expenditure of about $220 billion this year, mainly directed toward AI infrastructure and data center construction, with capital spending set to rise significantly further in 2027. The high level of investment has left the company with a net free cash flow outflow of $42.4 billion over the past 12 months. Some analysts note that deploying capacity ahead of signed orders is fundamentally different from expanding indiscriminately without clear demand to support it.
The company’s earnings and cash reserves remain solid. Operating cash flow rose 29% to $168 billion over the past 12 months, and it holds about $114 billion in cash and marketable securities, enough to support AI investment and retail expansion.

As of November 9, Amazon shares were up 17% year to date, outperforming the Dow Jones Industrial Average. The stock is currently trading at about $267, below its 52-week high of $287.20, giving it a market capitalization of about $2.89 trillion. Its price-to-earnings ratio, calculated using operating profit over the past 12 months, is about 28. The S&P 500’s forward P/E is about 19, meaning Amazon trades at a premium to the market.
Market observers believe that continued earnings growth, combined with its leading positions in cloud computing and e-commerce, is enough to support its current valuation. Jassy’s long-term target suggests that AWS and retail could eventually generate a combined $2 trillion in annual revenue, making Amazon a high-quality growth stock suited to long-term investors.$AMZN