Amazon’s Cloud Computing Business Already Brings in More Revenue Than 476 Companies in the S&P 500. Here’s What It Would Take to Reach $1 Trillion.

Amazon Web Services (AWS), Amazon's cloud computing platform, is now a larger revenue generator than 476 companies within the S&P 500, according to trailing-12-month data. In 2023, AWS generated $161.4 billion in revenue, surpassing the combined revenue of the aforementioned companies. Amazon's CEO, Andy Jassy, anticipates AWS could reach a $1 trillion mark within a five to 10 year timeframe.

To achieve this ambitious goal within five years, the business would need to maintain an annualized growth rate of approximately 41.5%, while over a 10-year period, the compound annual growth rate (CAGR) would decrease to around 19%.

AWS has experienced accelerated revenue growth over the past five quarters, with a 39% year-over-year growth rate in the third quarter of 2023. Jassy projects revenue growth rates exceeding 40% in 2027 and 2028. This growth trajectory is attributed to Amazon's strategic investments in AI development, which entail a two-year lead time to see revenue generation from new data centers.

Amazon's capital expenditures (capex) have declined in 2023, surged about 57% in 2024 and 58% in 2025, with a projected 67% growth in 2026. Management expects this trend to continue, potentially providing sustained revenue growth for AWS, even as supply constraints ease. Jassy's optimistic outlook suggests that AWS could achieve the $1 trillion revenue goal, driven by a strong focus on long-term platform strategy, advancements in AI, and the ongoing shift of businesses from on-premises computing to the cloud.