2 Actions That Turned $1,000 Into $1 Million (or More)

Technology 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 the top tech players have turned $1,000 investments into over $1 million over the years.

Data by YCharts

This chart shows the massive increase in stocks Apple (AAPL -2.72%) and Amazon (AMZN -1.26%) they 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, a $1,000 investment in Amazon at its 1997 IPO would now be worth $1.8 million.

These companies lead their respective industries, with Apple being the king of consumer technology and Amazon leading the cloud market. Their success has helped them build massive hoards of cash, allowing them to continue to invest in their businesses and maintain dominance in their respective markets.

As a result, it’s not too late to invest and see big gains in Apple and Amazon stock. So here are two stocks that 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 moments in time when its business and the technology industry changed forever. The release of the first iPod in 2001 revolutionized the music industry, being the first MP3 player to offer 1,000 songs and 10 hours of battery life in a 6.5-ounce form factor. Then in 2007, the company did it again with the first iPhone, launching smartphones into the mainstream.

Apple’s stock price is up 70,000% since the iPod was released and more than 5,000% since the iPhone debuted. Meanwhile, the company has seen impressive gains since the launch of its first iPad in 2010 and its push into digital services with iCloud in 2011.

Devotion to innovation has consistently pushed Apple’s business forward and provided investors with major growth. As a result, its recent expansion into artificial intelligence (AI) is promising as it could spur a new period of growth.

Data from Grand View Research shows that the AI ​​market is expanding at a compound annual growth rate of 37% and is expected to reach nearly $2 trillion in spending by 2030. Meanwhile, Apple is preparing to overhaul its business to prioritize AI.

In just a few days, on September 9, the tech giant is scheduled to unveil its iPhone 16 line of smartphones, with analysts expecting the device to introduce a number of new AI capabilities. The new iPhone will be followed by the release of Apple Intelligence, a massive AI update to the operating systems on newer iPhones, iPads and Macs.

Apple has hit $104 billion in free cash flow by 2024. Along with a strong brand and impressive growth history, the company’s stock is worth picking up early in its AI journey.

2. Amazon: The golden touch

Since its founding 30 years ago, Amazon has struggled to keep up with market trends. As a result, the company has expanded into multiple sectors, from e-commerce to cloud computing, grocery, retail, video games, music, streaming and now AI. Amazon not only entered these industries, but quickly rose to a dominant position.

Amazon’s golden touch achieved a 37% market share in online retail, a 31% share in cloud computing and a 22% share (equivalent to Netflix) in streaming video. Each figure represents Amazon’s leading or tied positions against its industry rivals.

Meanwhile, the company is already dominating its own AI space with its cloud platform, Amazon Web Services (AWS). AWS has a 6-point lead over its closest cloud rival, MicrosoftAzure, in market share and is 20 points ahead AlphabetHis Google Cloud. The Amazon leader is giving it a strong role in AI, with companies increasingly turning to cloud platforms to integrate generative tools into their businesses.

Since 2019, AWS revenue has grown 164%, massively outperforming Amazon’s other core segments. During that time, revenue from the company’s North American and international divisions grew by 68% and 33%. In addition, AWS is now Amazon’s most profitable business, accounting for more than 60% of operating income due to growing demand for cloud services.

Amazon has delved into AI over the past year, releasing new AI tools on AWS, introducing an AI shopping assistant to its retail site, and announcing a venture into chip design. During that time, the company’s free cash has grown by about 186% to $48 billion, illustrating its rapid success in the industry.

Amazon boasts a long history of growth that has shown no signs of slowing down. Since the IPO, Amazon has turned $1,000 into nearly $2 million. And the company could do so again as it continues to expand into high-growth industries like AI, making its stock a problem right now.