That places Amazon stock at a price-to-earnings ratio (P/E) of 40.9. It's still a premium to the Nasdaq-100 index, which represents all of Amazon's big-tech peers and trades at a P/E of 33.8. However, the picture looks a little different when we consider the company's potential.

Berkshire Hathaway‘s fourth-quarter operating earnings surge 71%, Apple plans to spend more than $500 billion in the U.S. over the next four years, Alibaba plans to invest more than $52 billion on artificial intelligence over the next three years,

U.S. stocks were mixed on Monday afternoon. Investors are turning their attention to Nvidia’s upcoming earnings — the first time the AI chipmaker is reporting results since a breakthrough by Chinese AI startup DeepSeek sparked a selloff in Nvidia and other tech stocks last month.

Nvidia (NASDAQ: NVDA) stock splits have become a clear sign of the stock's strength in the world of artificial intelligence (AI). Its transformational power over the chip industry allowed it to replace the former industry leader Intel as one of the 30 stocks making up the Dow Jones Industrial Average (DJINDICES: ^DJI) in November 2024.

What happens with Nvidia matters for the entire U.S. stock market. The chip company has grown into the second-largest company on Wall Street, which means the stock’s movement carries more weight on the S&P 500 and other indexes than every company except Apple. The tech giant, based in Santa Clara, California, is now worth over $3 trillion.