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Amazon.com, Inc. (AMZN): A Bull Case Theory

We came across a bullish thesis on Amazon.com, Inc. on Disruptive Analytics’ Substack by Magnus Ofstad. In this article, we will summarize the bulls’ thesis on AMZN. Amazon.com, Inc.’s share was trading at $208.47 as of June 23rd. AMZN’s trailing and forward P/E were 33.95 and 32.26, respectively, according to Yahoo Finance.

A network of interconnected data points representing cloud-based software solutions.

Amazon (AMZN) is a complex business that, at first glance, appears to operate like a traditional logistics company, with millions of employees packing and delivering merchandise. Yet despite this scale, its e-commerce segment contributes relatively little to operating profits. The real engine lies elsewhere—Amazon Web Services (AWS) and advertising together account for nearly 80% of profits while representing only 30% of total revenue.

AWS, Amazon’s cloud division, dominates with a 50% market share and stands as critical infrastructure in the AI revolution, offering recurring, high-margin revenue amid competition from Microsoft and Alphabet. As AI adoption accelerates, Amazon’s massive data streams from its retail, logistics, and cloud businesses provide unmatched fuel for model training and deployment. This strategic advantage enables Amazon to lead in AI personalization, supply chain optimization, and automated customer service.

Amazon is capitalizing on this through heavy investment—over $100 billion in 2025—to expand its AI infrastructure and reinforce its leadership. Despite being among the most scrutinized stocks on Wall Street, with analyst price targets clustering around $240–$250, a DCF analysis aligns with this consensus, suggesting limited market mispricing. The main hesitation lies not in valuation or fundamentals but in the psychological barrier of owning a heavily indexed stock individually.

However, this concern may be misplaced. Amazon’s centrality in AI and cloud, and its sheer operational scale, make it an exceptional vehicle for long-term compounding. Even if widely owned, it remains a structurally advantaged asset likely to outperform as AI adoption deepens across industries.

Previously we covered a bullish thesis on Amazon.com, Inc. (AMZN) by Charly AI in January 2025, which highlighted Amazon’s AI edge through custom chips and cost-efficient infrastructure. The stock has depreciated by ~12.4% since then, as the thesis didn’t play out short term. The thesis still stands. Magnus Ofstad shares a similar view but emphasizes Amazon’s broader AI monetization engine.

Amazon.com, Inc. is on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 328 hedge fund portfolios held AMZN at the end of the first quarter, which was 339 in the previous quarter. While we acknowledge the risk and potential of AMZN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AMZN and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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