Amazon.com, Inc. is on track to become the first company to generate $1 trillion in annual revenue by 2028, according to Futurum Equities Chief Market Strategist Shay Boloor. The projection relies on Amazon's diversified business model, which Boloor describes as one of the most important infrastructure companies in the world, compounding across commerce, cloud, logistics, ads, and artificial intelligence (AI) simultaneously.

Business Drivers and AI Investments

The bullish outlook underscores growing optimism regarding Amazon's expanding AI initiatives, Amazon Web Services (AWS) cloud business, advertising segment, and logistics network. These sectors are expected to drive rapid revenue growth over the next several years. In support of this expansion, Amazon plans to invest about $200 billion in capital expenditures in 2026. This spending is supported by major customer commitments, including more than $100 billion from OpenAI.

Custom Chip Performance

Amazon's custom chip business, led by Graviton and Trainium, has surpassed a $20 billion annualized revenue run rate. The segment is growing at triple-digit rates, with the company anticipating lower costs and higher margins over time.

First Quarter Performance

In April, Amazon reported financial results for the first quarter that exceeded Wall Street expectations. The company posted revenue of $181.52 billion against analyst estimates of $177.30 billion. Earnings per share were $2.78, significantly higher than the consensus forecast of $1.66 per share.

Amazon shares gained 2.5% to close at $232.69 on Friday. Over the past five years, the stock has gained more than 32%.

Jeff Bezos' companies are challenging Elon Musk's businesses on two fronts, as Amazon.com Inc.-owned Zoox unveiled its updated Robotaxi while Bezos-owned Blue Origin showcased new technology aimed at future Mars missions. The developments highlight the intensifying competition between the two billionaires in the autonomous vehicle and space sectors.

Zoox Unveils Updated Robotaxi

Zoox revealed the updated version of its Robotaxi, stating that the company can now produce over 100 units of the vehicle. While the hardware remains unchanged, the updates target better ergonomics and comfort for passengers. The vehicle features a new touchscreen and an improved two-way audio system. It continues to utilize a LiDAR-enabled self-driving suite and a bidirectional design with four seats offering face-to-face bench seating.

The company reported that it has completed over 500,000 rides since launching its service in Las Vegas. In comparison, Alphabet Inc.'s Waymo, which operates in over 10 cities across the U.S., provides 500,000 rides per week. Meanwhile, Tesla Inc.'s Robotaxi vision received support after the Cybercab was praised by the Texas Department of Transportation’s Executive Director.

Blue Origin Touts Mars Tech

Blue Origin, which secured key Lunar NASA contracts last month, promoted its Mars technology via a post on social media platform X. CEO Dave Limp showcased the company's Blue Ring Mars Telecommunications Orbiter (MTO), which provides propulsion and Earth communication. The orbiter is designed to simplify requirements for orbiters and landed assets on the Martian surface.

According to Limp, the orbiter offers next-generation high-resolution imagery, weather and dust storm monitoring, and ice mapping for fuel resources. Blue Origin stated that the orbiter enables standard transfer windows to Mars and timely insertion into an initial Martian orbit. The spacecraft features both electric and chemical propulsion, enhancing performance and payload capacity during interplanetary cruise.

SpaceX Achieves Milestones

Space Exploration Technologies Corp, a key rival of Blue Origin, recently achieved a milestone in its orbital payload goals. The company launched a Falcon 9 rocket from Cape Canaveral Space Force Station to test Starfall, a new disk-shaped uncrewed reentry capsule designed to return cargo from space. Additionally, SpaceX raised over $25 billion via unsecured senior notes to pay off bridge loans, following a blockbuster IPO that raised close to $86 billion.