Apple (AAPL) maintains its status as the second most-valuable company globally, with a market cap of $3.7 billion, but Amazon (AMZN) and Meta Platforms (META) are emerging contenders in the race for market dominance. Both companies are leveraging generative artificial intelligence (AI) to enhance their growth prospects, potentially positioning them to surpass Apple’s valuation by 2035. Amazon, while not yet viewed as an AI leader, is capitalizing on its cloud computing strength through AWS and expanding its advertising business, which is now generating nearly $60 billion annually.

Meta has pivoted successfully from the metaverse to AI, experiencing a resurgence in growth with a 16% revenue increase and a remarkable 73% rise in EPS in 2023. With a market cap of $1.4 trillion, Meta’s focus on monetizing AI beyond advertising could drive significant valuation expansion, particularly as it trades at a lower earnings multiple compared to Apple.

For market professionals, the key takeaway is that both Amazon and Meta are strategically positioned to challenge Apple’s dominance, making them stocks to watch as they harness AI for future growth.

Source: fool.com