2 millionaire-maker artificial intelligence (ai) stocks

Two "Millionaire-Maker" AI Stocks Poised for Massive Growth

The artificial intelligence (AI) revolution is accelerating, with spending projected to grow fivefold over the next five years. This massive investment in AI is creating significant opportunities, particularly for the cloud computing giants that provide the essential infrastructure for AI development and deployment. As AI start-ups and established companies alike increasingly rely on cloud systems for training and running sophisticated AI models, the demand for cloud services is soaring.

Huge capital expenditures on data centers are fueling this growth, setting the stage for continued expansion in the years ahead. Among the companies best positioned to capitalize on this trend are two well-known tech leaders with a history of delivering exceptional returns: Amazon and Alphabet. These companies are not only benefiting from the AI surge through their dominant cloud platforms but are also deeply involved in developing consumer-facing AI applications. Let's explore why these two stocks could continue to be "millionaire-makers" thanks to AI and their robust cloud businesses.

Amazon's Cloud Dominance and AI Partnerships

While Amazon is integrating AI into its core e-commerce business, its most significant AI investments are concentrated within Amazon Web Services (AWS), its powerful cloud computing division. AWS serves as a premier partner for leading AI start-ups like Anthropic, in which Amazon has invested billions. These partnerships translate into Anthropic committing to spend vast sums on training and running its AI systems on AWS infrastructure. Long-term collaborations like this are incredibly valuable, potentially generating tens of billions of dollars in cloud computing credits over time.

AWS has already seen its revenue growth accelerate, driven by companies migrating their AI workloads to the platform. Last quarter, AWS revenue grew 17% year over year to $29.3 billion, reaching an annualized run rate of $117 billion. This influx of AI-driven demand is also dramatically boosting profitability, with operating income for the AWS segment alone reaching $42 billion over the past 12 months.

Looking ahead, growth is expected to remain strong. Amazon plans to invest $100 billion in capital expenditures in 2025, primarily focused on expanding its AI capacity within AWS. This increased data center infrastructure will be critical for supporting continued revenue scaling at a rapid pace. Coupled with strong profit margins, AWS is set to be a major earnings growth engine for Amazon for years to come.

When you combine this robust, high-margin growth at AWS with the continued, durable growth of Amazon's core e-commerce business, the stock presents a compelling long-term investment case. While Amazon's forward price-to-earnings (P/E) ratio of 35 might appear somewhat high at first glance, this multiple is expected to decrease quickly as e-commerce margins improve and AWS maintains steady, profitable expansion. Buying Amazon stock and holding for the long term could prove very rewarding.

Alphabet: A Dual Play in Cloud and Consumer AI

Alphabet, the parent company of Google, offers an arguably even more exciting opportunity in the AI space because it is successfully navigating disruption on two fronts: providing AI infrastructure through its cloud services and developing cutting-edge, consumer-facing AI applications. Furthermore, Alphabet's stock currently trades at a more attractive valuation than Amazon's.

Google Cloud is currently the fastest-growing major cloud provider, reporting 28% year-over-year growth last quarter, reaching $12.3 billion in revenue. While smaller than AWS, it is expanding rapidly. Companies are increasingly choosing Google Cloud due to Alphabet's superior infrastructure, specifically optimized for training and running AI systems using its custom-built tensor processing units (TPUs). These specialized chips have even attracted major AI players like OpenAI, which recently signed a deal to utilize Google Cloud for some of its workloads.

Beyond infrastructure, Alphabet is also a leader in consumer AI. Despite some investor concerns that new AI start-ups could threaten its dominant Google Search business, Alphabet has proactively integrated AI into its offerings. Its Gemini AI models and AI Overviews in Search demonstrate a successful strategy of disrupting its own business to stay relevant and competitive. While specific revenue figures for Gemini are not yet available, user adoption is showing blistering growth rates. Management reported that active users in AI Studio and utilizing the Gemini API surged by 200% in the first quarter of 2025 alone – effectively tripling the user base in just three months. This rapid adoption signals significant future revenue potential.

Trading at a forward P/E of 18.5, Alphabet stock is significantly cheaper than Amazon's. Despite the competitive pressures from emerging AI players, Alphabet appears undervalued given its status as a perennial growth stock that is not only participating in but actively leading the AI boom across both infrastructure and consumer applications. Investing in both Amazon and Alphabet stocks could well be a strategy that delivers substantial portfolio appreciation over the next decade.