It comes as no surprise to most investors that with a market cap of $2.5 trillion, Amazon(NASDAQ: AMZN) is one of the stock market's biggest companies. And deservedly so. It's grown into the e-commerce giant it is today by becoming the United States' premier online shopping platform. It's also the world's biggest cloud computing service provider, as measured by revenue.
Amazon wasn't always the enormous outfit that it is today, however. It surpassed other names to get there. In that same way, other companies could do the same for Amazon in the foreseeable future.
Here's a closer look at three stocks that could be worth more than Amazon within a decade, making them fantastic investment prospects for the interim.
1. Alphabet
Alphabet(NASDAQ: GOOG)(NASDAQ: GOOGL) is of course parent to search engine giant Google, which not only outright dominates the search business, but also accounts for over half of the parent company's total revenue. YouTube, Google Cloud, and subscriptions/platforms evenly round out the remainder of its top line.
Obviously, none of these businesses are going away anytime soon, if ever. In fact, all of them are likely to keep growing at a brisk clip. Market research outfit SkyQuest Technology says the search engine market alone is poised to grow at an annualized pace of 11% through 2032.
Alphabet may have an underestimated ace in the hole though ... two of them, actually.
You may be familiar with Google's AI-powered chatbot Gemini. And it's impressive to be sure. This isn't the be-all and end-all of the company's application of its AI know-how, however. For instance, its Project Bellwether will help predict and therefore preemptively respond to natural disasters like wildfires and floods. And Bellwether is just one of the institutionally minded AI profit centers the company is working on.
Slightly further down the road, Alphabet will be able to offer quantum computing solutions. In December it unveiled a quantum computing chip called Willow that's capable of solving in minutes calculations that would take modern-day supercomputers millions of years to tackle. The real breakthrough, however, is that this 105-qubit platform produces fewer errors. You would expect to see more errors as the number of qubits put to use grows.
It's not yet clear exactly how this tech will be monetized. What is clear, though, is that quantum computing is changing the game, and will have value to anyone who cares to figure out how to leverage it.
Of course, with a market cap of just under $2.4 trillion, Alphabet has the least distance to travel to eclipse Amazon's position as a size leader.
2. Tesla
There's no denying Tesla(NASDAQ: TSLA) isn't quite the iconic electric vehicle (EV) name it was just a few years ago. Competition has finally crept in. And it wouldn't be unfair to suggest CEO Elon Musk has been a bit distracted of late, by virtue of being heavily involved with U.S. President Donald Trump's initial administrative efforts. It would also be naïve to believe X (formerly Twitter) hasn't been on his mind more than a little since he acquired and privatized the social media platform back in 2022. Existing and would-be Tesla shareholders are understandably concerned.
Now take a step back and look at the bigger picture. There are two key things still working in this $1.3 trillion company's favor.
The first of these is the fact that while Trump may be working to dial back EV ownership incentives while he's rekindling support for the oil industry and combustion-powered cars, the electric vehicle revolution may simply be too big and moving too fast to stop now. While Trump's election in November has the potential to be a big anti-EV move, S&P Global Mobility still expects worldwide sales of battery-electric vehicles to grow 30% this year from 2024's count. That's just the beginning though. Precedence Research believes the global EV market is poised to grow at an annualized piece of 23% through 2034.
But what assurance is there that Tesla will win at least its fair share of this growth after losing a bit of market share to rivals last year? That's the second thing working in Tesla's favor here.
It's admittedly just a hunch, but there's a good chance Musk may soon tire of his role as the head of the Department of Governmental Efficiency and turn his focus back to his proverbial bread and butter. That's Tesla. Tesla's frustrated shareholders, in fact, may soon insist on it. There's also the not-so-small detail that Tesla remains one of the premier names in the business, and should be successfully releveraged to drive fresh demand one Musk decides to reengage.
3. Broadcom
Finally, tech company Broadcom(NASDAQ: AVGO) has a great shot at being bigger than Amazon by 2035, growing quite a bit from its current market cap of just under $1 trillion.
Certainly, most investors have heard of Broadcom. But many of these same investors would be hard-pressed to name a single technological solution it makes and markets. That's because the bulk of hardware is found inside your consumer technology, with no label on the outside. That, or its tech is found in the data centers and cloud computing platforms that you rely on without ever actually seeing.
That technology? Communications and connectivity, mostly. Broadcom makes everything from fiberoptic connectors to WiFi chips to networking components, and more, including the software that makes all this technology work. The crux of its near- and long-term growth opportunity lies in data centers, however, and AI data centers in particular. Last fiscal year's top-line growth of 51% was led by sales of AI-related tech, which improved a whopping 220% year over year.
And yet, there's much more of the same in store. In December, CEO Hock Tan suggested the ongoing growth of AI could quadruple the current size of the AI infrastructure market as soon as 2027, when it might be worth as much as $90 billion. With the protection of thousands of patents, Broadcom is positioned to capture more than its fair share of this looming growth.
But this market could still keep growing well after that. Straits Research suggests the AI infrastructure market is set to grow at a relatively consistent annualized pace of just over 20% all the way through 2032. That's going to drive faster overall top-line growth for Broadcom than Amazon's been able to achieve for quite some time now.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. James Brumley has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet, Amazon, and Tesla. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.
