10 Hottest Large-Cap Stocks Right Now

3. Amazon.com, Inc. (NASDAQ:AMZN)

Return: -0.62%

Amazon had a relatively good week compared to other stocks analyzed, closing only 0.62% below last week. Its shares witnessed a positive trend this week, meaning that investors started to pour their funds into this safe haven of a stock during the volatile start of 2025. Its volume didn’t show any spikes, which reflects consistency and investor confidence in this stock.

Amazon isn’t an online retailer that competes with Walmart. Amazon is a cloud computing and advertising company. Amazon is one of the obvious winners of the AI revolution because training large AI models requires massive computational power, which AWS provides through its high-performance computing infrastructure. AWS offers a comprehensive machine learning platform that simplifies the process of building, training, and deploying AI models. AWS’s customers prefer AWS over their in-house infrastructure because they can scale up or down instantly, rather than wrestling with the limited availability of NVIDIA’s GPU AI chips. These customers aren’t likely to switch due to high switching costs.

The total cloud market is expected to grow from $700 billion in 2024 to nearly $2400 billion in 2032. Amazon is a toll booth operator in the cloud computing and AI industries which is why Amazon’s CEO Andy Jassy said AI is a “really unusually large, maybe once-in-a-lifetime type of opportunity”.

Amazon is also an exciting investment opportunity because of its fast-growing advertising business. Amazon generated total advertising revenues of $14.3 billion during the third quarter, growing at a year-over-year rate of also 19%. Amazon will probably generate more than $60 billion in advertising revenue over the next 12 months. That’s 9% of the global digital advertising market. Google captures close to 28% of the global digital advertising market. Most investors don’t realize that Amazon’s advertising business is one third as big as Google’s and should be valued at close to $1 trillion.