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Analyst Says Amazon.com (AMZN) Stock Rebound Coming Soon – Here’s Why

We recently published 10 Trending Stocks This Week. Amazon.com, Inc. (NASDAQ:AMZN) is one of the trending stocks this week.

Frances Stacy from Scarlet Oak Financial said in a program on Schwab Network on Oct. 7 that Amazon has been lagging behind peers in “AI participation.” However, the analyst believes the stock has more room to run.

“Amazon is kind of old faithful when you talk about traditional cloud services, but it’s been a bit of a laggard in the AI participation. Its investment in Anthropic has been significant. Obviously, they’ve done a deal with IBM, and that’s huge, and Claude is growing in its market share. The fact that Anthropic is kind of making some noise and Amazon is investing in that is bringing Amazon into that sort of up-and-coming AI conversation. So Amazon’s stock price has been kind of trading based on more traditional metrics and hasn’t been part of the AI bubble, but now I think it has an opportunity to catch up. And just looking at the chart here, we’ve been a bit rangebound between 216 and 224, trading at 222 right now. I think that if we can hold these higher lows here and we can particularly hold the August 4th low, I think that Amazon’s got some room to run as an AI play that might be a bit discounted.”

Amazon shares are down 3% so far this year and have underperformed major tech stocks. Why? Two major factors are impacting the stock. Tariff-related headwinds and weakening consumer buying power have been an overhang for the company’s e-commerce business. But more than that, Wall Street has been spooked by a relative slowdown in the company’s Cloud business. In the second quarter, AWS grew 17.5%, a deceleration compared to the previous few quarters. In the same period, Microsoft Azure grew 26% and Google Cloud rose 32%.

What’s ailing AWS? The cloud market is undergoing a structural shift amid the AI wave.

AWS has always been focused on infrastructure (IaaS), allowing customers to build their own applications with flexibility. However, companies are now preferring AI-first cloud platforms with strong integration with generative models. This helps Microsoft (OpenAI) and Google (Gemini) because of their strong AI and app ecosystems.

Mairs & Power Balanced Fund stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its second quarter 2025 investor letter:

“The Fund also started a new position in Amazon.com, Inc. (NASDAQ:AMZN) in the second quarter, where the company is well positioned to continue capturing market share in retail while also growing its market leading cloud business. The Fund took advantage of weakness in the stock during April to start the position as tariff news and a precipitous market decline provided an opportunity to build a position.”

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: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.

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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In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • 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…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

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