Cathie Wood’s ARK Invest projects Amazon Web Services (AWS) will become a trillion-dollar-per-year revenue business. Accelerating demand for artificial intelligence fuels this growth. During an AI mid-year review, ARK analysts noted Amazon's leadership initially viewed AWS as a multi-hundred-billion-dollar business. They now believe it can reach a trillion-dollar run-rate.
The investment firm bases its bullish outlook on the massive compute capacity AI requires. Combined cloud backlogs for AWS and Google Cloud already exceed $1 trillion. ARK also highlighted AI's consumer-side benefits. Shoppers using Amazon's AI-enhanced Alexa features spend 40% more per order. This demonstrates AI's ability to drive retail monetization.