Prediction: This Artificial Intelligence (AI) Stock Could Be the Best Performer of the Next Decade

Artificial intelligence (AI) stocks -- from new-to-market players like CoreWeave to 30-year-old companies like Nvidia -- have soared in recent times. CoreWeave has surged more than 200% since its March initial public offering, and Nvidia has advanced more than 1,300% over the past three years. This is as investors recognize the potential of this technology to deliver efficiency and growth to companies over time -- and they aim to get in on possible winners early in this story.

This technology doesn't look like a short-lived trend, though, meaning companies and investors have plenty of time to invest and win. Today AI players are training models -- and this work will allow these models to handle real world problems during the coming phases of AI growth. And all of this may play out over the coming decade.

Of course, we all want to know which stocks may score a win in this environment. Well, my prediction is the following AI company could be the best performer of the next decade.

Image source: Getty Images.

Many players could win

I want to preface this by saying many AI players are likely to excel in the coming years as customers actually use AI to improve their operations, save time, and even make new discoveries. But the following company, as it both uses and sells AI tools, might be the top performer of the decade.

I'm referring to e-commerce and cloud computing giant, Amazon (NASDAQ: AMZN). The company is a leader in both of those areas, and this has helped it to deliver year after year of revenue growth -- well into the billions of dollars. There was one exception in recent times, when Amazon reported an annual loss as it struggled with rising inflation -- but it used this as an opportunity to overhaul its cost structure, a move that immediately brought results and should continue to favor growth in the coming years.

Now, let's talk about the AI opportunity. Amazon is applying AI tools to its entire e-commerce operation, to streamline processes across fulfillment centers and make delivery faster – for example, it uses AI to choose the best delivery routes to bring a package from a warehouse to your doorstep. All of this will progressively lower Amazon's cost to serve, and this supports higher profitability.

Image source: Amazon.

A multi-billion-dollar revenue run rate

As for the cloud business, Amazon Web Services (AWS) offers access to a wide variety of AI products and services to customers. And here, too, the bet is paying off -- AWS already has reached a $123 billion annual revenue run rate thanks to its AI portfolio.

AWS is a winner here for two reasons. First, as the world's biggest cloud provider, it has an enormous number of customers right at its fingertips, and they may prefer going to AWS for AI than switching to another cloud company. Second, AWS offers its customers many options for any budget or need: It's designed its own chips for budget-conscious customers, but it also offers access to Nvidia's top performing, higher-cost chips. Customers can simply rely on AWS for access to compute power, or they can choose to use Amazon Bedrock, a managed service allowing customers to tailor popular large language models (LLMs) to their needs. And this is just to offer a few examples of AWS' portfolio of AI.

A look at market value

Amazon's use of AI along with this selling of AI to customers should supercharge revenue in the decade to come -- and that could boost the stock price. It's important to note that Amazon, with a market value of $2.3 trillion compared to more than $3 trillion and $4 trillion for other key players, has room to run.

AMZN Market Cap data by YCharts

Valuation also supports this idea. Today, Amazon trades for 33x forward earnings estimates, that's down from more than 50x about two years ago.

That's why my prediction is Amazon could be the best performer in the S&P 500 over the coming decade. And the best news of all is the following: Even if my prediction is wrong, the company still has what it takes to deliver significant growth to shareholders in the coming years.

Adria Cimino has positions in Amazon. The Motley Fool has positions in and recommends Amazon, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.