Amazon and Alphabet’s combined market capitalization could reach $3 trillion by 2029.
Artificial intelligence giant Nvidia’s market capitalization is currently $2.9 trillion, but the chipmaker has been hovering around $3 trillion in recent months — a level surpassed by only two other publicly traded U.S. companies: Apple and Microsoft.
Future Outlook, Amazon (AMZN 3.71%) alphabet (Google 0.99%) (Google 1.05%) NVIDIA could surpass its current valuation and become a $3 trillion company by 2029. We’ll go into more detail on what that means for shareholders below.
Amazon’s market cap is currently $1.9 trillion. If it can reach $3 trillion by 2029, it would represent a 58% increase in total revenue, or 10.7% annually over the next 4.5 years. Alphabet’s market cap is currently $2 trillion. If it can reach $3 trillion by 2029, it would represent a 50% increase in total revenue, or 9.4% annually over the next 4.5 years.
Here’s what investors need to know about Amazon and Alphabet.
1. Amazon
Amazon has three key growth engines: e-commerce, digital advertising, and cloud computing. Specifically, it operates the most popular online marketplace in the U.S. by number of visitors, accounting for 41% of retail e-commerce sales in the U.S. The company also has a vast logistics network that supports fulfillment services for sellers and fast delivery for buyers, strengthening its leadership position.
Amazon is the world’s third-largest ad tech company, but it has a strong presence in retail media, which refers to the digital advertising services offered by retailers. That’s important because retail media is one of the fastest-growing segments of the digital advertising market, according to eMarketer. Plus, Amazon recently secured a new revenue stream by introducing advertising to Prime Video.
Finally, Amazon Web Services (AWS) is the largest public cloud, with its market share rising 1 percentage point to 32% in the June quarter. This share growth reflects aggressive investments in artificial intelligence (AI) services: “In the last 18 months, AWS has made more than twice as many machine learning and generative AI capabilities generally available than all other major cloud providers combined,” CEO Andy Jassy recently told analysts.
Looking ahead, eMarketer predicts that U.S. retail e-commerce sales will grow 9% annually through 2028, while spending on retail media will grow 24% annually over the same period. Meanwhile, International Data Corp. (IDC) predicts that spending on public cloud will grow 19% annually through 2028. This gives Amazon a good chance to achieve double-digit sales growth over the next four and a half years.
Here’s why Amazon could be valued at $3 trillion by 2029: Currently, the company is valued at $1.9 trillion. If revenue grows at a reasonable 12% annual rate through the end of 2028, the company’s market cap would reach $3 trillion if the stock traded at 3x sales, which is slightly cheaper than its current valuation of 3.1x sales.
2. Alphabet
Alphabet has two key growth engines: digital advertising and cloud computing. The company owns six products that serve more than 2 billion users per month. The most important of these are the most popular streaming video platform (YouTube) and the leading internet search engine (Google Search). These platforms allow Alphabet to efficiently collect information and deliver data-driven advertising to consumers.
According to eMarketer, Alphabet is on track to capture 27.4% of global digital ad spending this year, more than 5 percentage points ahead of Meta Platform, the world’s second-largest digital advertiser. Importantly, while Alphabet is losing share across the open internet, its dominance in internet search and streaming video should keep it ahead of competitors for the time being.
Meanwhile, Google Cloud is the third-largest public cloud, with market share up 1 percentage point over the past year to 12%. This share increase reflects its position as a leader in AI infrastructure solutions and large-scale language models. “So far this year, our AI infrastructure and generative AI solutions for our cloud customers have already generated billions of dollars in revenue and are used by more than 2 million developers,” CEO Sundar Pichai told analysts during the company’s second-quarter earnings call.
Looking ahead, eMarketer predicts that global digital ad spending will grow 10% annually through 2028, while IDC expects public cloud spending to grow 19% annually over the same period. This will likely enable Alphabet to achieve double-digit revenue growth over the next four and a half years, along with potential growth for its subsidiary Waymo, which operates a self-driving ride-hailing network in several U.S. cities.
Here’s how Alphabet could be valued at $3 trillion by 2029. The company’s current market cap is $2 trillion. If revenues grow at 10% annually through the end of 2028, the company’s market cap would reach $3 trillion if it traded at six times sales, a slight discount to its current valuation of 6.4 times sales.
John Mackey, former CEO of Amazon subsidiary Whole Foods Market, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, former director of market development and public relations at Facebook and sister of Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Trevor Genewine owns shares of Amazon and NVIDIA. The Motley Fool owns shares of and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, and NVIDIA. The Motley Fool recommends long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
