This ultra-long stock will become the largest stock in the world in 2025-this is not NVIDIA
The world is introduced to Nvidia In 2024. The semiconductor company is the main seller of the artificial intelligence computer chip (AI) data center. The demand for these data centers is huge. Over the past few years, Nvidia’s revenue and profits have soared, and investors have obtained Uber-Bullish stocks. As of writing this article, the market value of NVIDIA was 3.46 trillion US dollars, making it the world’s largest company and divided according to market value.
I think that 2025 will be a year of strike by the empire, and the remaining large -scale technologies will re -get a foothold for negotiations because the semiconductor supply chain has caught up with the demand for AI products. Who will benefit the greatest benefit? My bet is Amazon (Nasdaq: AMZN)This is the world’s largest cloud computing company, which is the backbone of many AI tools, and they grow like Gangbusters.
In addition to its main e -commerce operations, Amazon’s cloud computing department will allow it to complete 2025 with the world’s largest market value. This is the reason.
Unlike other large -scale technology companies with high profit margins, Amazon’s profitability is still underestimated because it tends to invest in future growth. Last year, we began to see the company finally get rid of gasoline. I think this trend will continue in 2025.
In the past 12 months of September, Amazon’s operating profit margin was 9.8 %, the highest record. Some reasons are that the operating profit margin in the field of Amazon Web services (AWS) cloud computing is 35 %. I expect AWS’s profit margin to remain strong, but the market segment is still less than 20 % of Amazon’s overall sales.
The expansion of profit margins mainly comes from Amazon’s dominant North American e -commerce business. In the past 12 months, its operating profit margin is 5.9 %. Still at the level of compression-Especially when you consider the high-profit third-party e-commerce fee brought by each year, when the tens of thousands of dollars in subscribing and advertising sales-Amazon has enough space Essence
Although this will not be the story of overnight, Amazon can easily complete the profit margin of 2025 at 15 %. If it is needed, it is likely to be 20 %. The only problem is how efficiency its expenditure in research projects like Alexa.
Amazon expanded its clear way in 2025. There are also reason to believe that it will continue to accelerate income growth, especially in AWS.
AWS’s net sales increased by 12 % in the third quarter a year ago and 19 % year -on -year in the previous quarter. The prosperity of AI expenditure should continue in 2025, and it seems that the capital expenditure budget is increasing every day. For AWS, this is a good thing, because more capital expenditure means more demand for AI computing power, which means that AWS has more income. In fact, the famous investor Soft silver It is announced that it will invest $ 100 billion in AI. Although all these will not be spent on the AWS data center, the trend will stay here.
