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Analysts Identify Multiple Catalysts for Amazon.com (AMZN) in 2026

Amazon.com, Inc. (NASDAQ:AMZN) is one of the 8 best American stocks to buy and hold in 2026. On December 29, Evercore ISI named Amazon.com, Inc. (NASDAQ:AMZN) as its top large-cap Internet pick for 2026. Analyst Mark Mahaney and his team highlighted the continued momentum at Amazon Web Services, following the AWS unit’s 20% year-over-year growth in the third quarter. This marked its fastest growth rate in the 11 quarters. For the first time since the third quarter of 2022, the growth rate surpassed that of Microsoft Azure. The analyst noted that the artificial intelligence narrative surrounding AWS has become more positive, supporting investor confidence.

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Mahaney expressed his views by saying:

”At the end of the day, AMZN remains a high-quality compounder (25% EPS CAGR), with solid double-digit revenue growth, expanding operating margins, and free cash flow likely to inflect up materially in a 24-month timeframe.”

Looking forward to 2026, Evercore ISI identified several additional catalysts for Amazon beyond AWS, including Trainium chips, ramping Alexa+ engagement, the grocery business, Amazon Pharmacy, Amazon Leo,  Zoox’s robotaxi service, and renewed focus on the Amazon for Business segment.

Following a strategic review, the company announced on December 28 that it had paused its plans for commercial drone deliveries in Italy.

In an emailed statement to Reuters, the company spokesperson said:

”Despite positive engagement and progress with Italian aerospace regulators, the broader business regulatory framework in the country does not, at this time, support our longer-term objectives for this program.”

Amazon.com, Inc. (NASDAQ:AMZN) is involved in the retail sale of subscription services, advertising, and consumer products through physical and online stores. It operates in the International, North  America, and Amazon Web Services (AWS) segments.

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:  Cathie Wood’s Stock Portfolio: Top 10 Stocks to Buy and 30 Most Fantastic Stocks Every Investor Should Pay Attention To.

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?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

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:

A few years from now, you’ll wish you’d owned this stock.

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