Tariffs Have Crushed Amazon Stock. Here's Why It Could Still Become Wall Street's First $5 Trillion Company Instead of Nvidia.

If one word can sum up the story of the stock market in 2025, it is tariffs. President Donald Trump has levied baseline tariffs on goods from many nations around the globe, but his administration has taken its most aggressive stance against China. For weeks, Chinese imports were being taxed at an average rate of more than 100% (and in many cases, up to 145%), upending supply chains and making some goods all but unsellable in the U.S.

Amazon (NASDAQ: AMZN) faces headwinds because of these tariffs, as a lot of the sellers on its e-commerce marketplace source their goods from China and other nations that Trump is targeting aggressively. The tech giant's stock is down 14% from its all-time high as of this writing, giving it a market cap of $2.2 trillion. Despite these headwinds, I believe Amazon is poised to become the first company with a $5 trillion market cap, outpacing companies like Microsoft and Nvidia en route to that milestone. Here's why.

In order for Amazon to reach a market cap of $5 trillion, it will need to keep growing its revenues at a double-digit rate (it grew its top line 10% year over year last quarter, excluding the impact of foreign exchange). And it can do so because of the long-term growth potential in both e-commerce and cloud computing, two sectors where it remains a leader.

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