AMZN is undervalued relative to history; strong AI/cloud demand and heavy capex support long-term growth.

Now, the third stock is Amazon, right? Amazon's stock is now priced at $250, and since the beginning of the year, it has risen by 13%. We talked a lot about this stock when it was in the $200 range , and also in the $210 and $220 range .

For me, Amazon's future price-to-earnings ratio is definitely more expensive than other competitors, at 27, but compared to its historical averages, it's cheap. It's very, very cheap .

Now, what is it that I really like about Amazon? Actually, I have two reasons for Amazon, but I think they will invest very heavily in this artificial intelligence market. They have stated that they have over 220 billion in capital expenditures this year, and even with this amount, we will not have enough capacity to meet all the demand in 2026.

I believe that this dynamic will continue into 2027 as well. In fact, the demand we already have for 2028 is staggering. This is the largest cloud service provider, yet it still says it does not have enough capacity to meet demand.

For me, this is exciting, and this player will continue to invest very heavily in this area .

Most importantly, Andy has very big goals. It was believed that AWS could become a company with revenues of several hundred billion dollars. And now he thinks it will be at least double that, right ?

A company with revenues in the hundreds of billions. It is very likely that the company will become a trillion-dollar company in time , with very attractive free cash flow and return on invested capital.

This statement comes from the biggest player in the cloud computing market. They know how things work, and they are here to tell us that they will continue to invest heavily because what they see in artificial intelligence is that it will be huge, and they want to make sure they get a large share of the market, with good free cash flow and return on invested capital.