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Amazon.com Inc. (AMZN) Gains Analyst Support on Strong AWS and AI Demand

Amazon.com, Inc. (NASDAQ:AMZN) is one of the 12 AI Stocks in Focus on Wall Street: Tesla, Meta, and More.

Amazon.com, Inc. (NASDAQ:AMZN) continues to gain renewed attention from Wall Street, landing itself the top spot on our list of 12 AI Stocks in Focus on Wall Street.

On April 21, Cantor Fitzgerald analyst Deepak Mathivanan raised the price target on the stock to $280.00 (from $260.00) while maintaining an “Overweight” rating. The firm feels strongly confident in Amazon’s AI-driven AWS growth and long-term margin expansion.

Discussing first-quarter performance expectations, the firm noted that the company is likely to report a strong quarter, driven by accelerating growth in AWS. This acceleration is in turn led by healthy demand from AI labs and recent supply unlocks, the firm said.

Recent company shareholder letters highlight several contributors to growth near-term, including 100% growth in its chips business. Backlog growth for the first and second quarter is also likely to experience a sharp increase, fueled by commitments from players such as OpenAI and Anthropic. The growth is anticipated to reach over $450B by the end of 2Q26E.

The firm anticipates AWS to see growing contribution from diverse Enterprise workloads in 2026.

Discussing retail, the firm expects in-line results with low-double-digit year-over-year revenue growth as well as 40-basis-point year-over-year margin expansion in the first quarter.

On outlook, AMZN’s 2Q guide is likely to bracket current Street estimates on revenues and EBIT. 2Q EBIT is likely to be pressured by elevated fuel costs (partly offset by surcharge), Q/Q seasonal SBC ramp, and incremental infra operating expenses. On the call, we will be watching for progress on infra buildout and incremental demand for AI. Overall, there is a lot to like at AMZN in 2026.

Amazon.com Inc. (AMZN) is an American technology company offering e-commerce, cloud computing, and other services, including digital streaming and artificial intelligence solutions.

While we acknowledge the risk and potential of AMZN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AMZN and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy. 

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The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

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