Tech stocks have a reputation for delivering significant gains over time. The market is an ever-expanding space driven by consistent innovation and demand for new products.
As a result, many of tech's most prominent players have turned $1,000 investments into more than $1 million over the years.
Data by YCharts
This chart shows the massive stock growth Apple(NASDAQ: AAPL) and Amazon(NASDAQ: AMZN) have delivered since going public. Apple went public in 1980 for $22 per share, meaning a $1,000 investment in the stock back then would be worth more than $1.4 million today. Meanwhile, an investment of $1,000 in Amazon at its IPO in 1997 would now be worth $1.8 million.
These companies rule their respective industries, with Apple a king of consumer tech and Amazon leading the cloud market. Their success has helped them build massive cash hoards, allowing them to keep investing in their businesses and maintain dominance in their respective markets.
As a result, it's not too late to invest and see big gains from Apple and Amazon's stock. So, here are two stocks that have turned $1,000 into more than $1 million and could do it again.
1. Apple: Preparing for a massive overhaul of its business
Throughout Apple's nearly 50-year history, there are precise points in time when its business and the tech industry changed forever. The release of the first iPod in 2001 revolutionized the music industry as the first MP3 player to offer 1,000 songs and a 10-hour battery life in a 6.5-ounce form factor. Then, in 2007, the company did it again with the first iPhone, launching smartphones into mainstream use.
Apple's share price has increased by 70,000% since the iPod was launched and more than 5,000% since the iPhone debuted. Meanwhile, the company has delivered impressive gains since the launch of its first iPad in 2010 and its push into digital services with iCloud in 2011.
A dedication to innovation has consistently pushed Apple's business forward and offered investors major growth. As a result, its recent expansion into artificial intelligence (AI) is promising as it could spur a whole new growth period.
Data from Grand View Research shows the AI market is expanding at a compound annual growth rate of 37% and is projected to hit nearly $2 trillion in spending by 2030. Meanwhile, Apple is preparing to overhaul its business to prioritize AI.
In just a few days, on Sept. 9, the tech giant is slated to unveil its iPhone 16 line of smartphones, with analysts expecting the device to introduce a range of new AI capabilities. The new iPhone will be followed by the launch of Apple Intelligence, a massive AI update to operating systems on newer iPhones, iPads, and Macs.
Apple hit $104 billion in free cash flow in 2024. In addition to a potent brand and impressive growth history, the company's stock is worth picking up at the start of its AI journey.
2. Amazon: The golden touch
Since its founding 30 years ago, Amazon has made a point of keeping up with market trends. As a result, the company expanded to multiple sectors, from e-commerce to cloud computing, grocery, brick-and-mortar retail, video games, music, streaming, and now AI. Amazon not only entered these industries but also quickly rose to a position of dominance.
Amazon's golden touch has achieved a 37% market share in online retail, a 31% share in cloud computing, and a 22% share (equal to Netflix) in video streaming. Each figure represents Amazon's leading or equal positions to its industry rivals.
Meanwhile, the company is already dominating its own area of AI with its cloud platform, Amazon Web Services (AWS). AWS has a 6-point lead against its closest cloud rival, Microsoft's Azure, in market share and is 20 points ahead of Alphabet's Google Cloud. Amazon's lead grants it a powerful role in AI, with companies increasingly turning to cloud platforms to integrate generative tools into their businesses.
Since 2019, AWS' revenue has climbed 164%, massively outperforming Amazon's other main segments. In that time, revenue in the company's North American and international divisions has risen 68% and 33%. Additionally, AWS is now Amazon's most profitable business, accounting for more than 60% of its operating income, thanks to rising demand for cloud services.
Amazon has plunged into AI over the last year, launching new AI tools on AWS, introducing an AI shopping assistant on its retail site, and announcing a venture into chip design. In that time, the company's free cash has climbed about 186% to $48 billion, illustrating its quick success in the industry.
Amazon boasts a long growth history that has shown no signs of slowing. Since its IPO, Amazon has turned $1,000 into nearly $2 million. And the company could do it again as it continues to expand into high-growth industries like AI, making its stock a no-brainer right now.
Should you invest $1,000 in Apple right now?
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Microsoft, and Netflix. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
