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“It’s About AWS,” Says Jim Cramer About Amazon.com (AMZN)

We recently published 12 Stocks on Jim Cramer’s Radar.  Amazon.com, Inc. (NASDAQ:AMZN) is one of the stocks on Jim Cramer’s radar.

Amazon.com, Inc. (NASDAQ:AMZN) is a key player in the AI industry due to several factors. These include the firm’s Amazon Web Services (AWS) cloud computing business and its in-house Trainium AI chips. The highly competitive cloud computing industry, which sees investors demand high growth rates, has also affected Amazon.com, Inc. (NASDAQ:AMZN) in 2025. As an example, the shares dipped in August after the firm’s second-quarter earnings saw AWS post a 17.5% revenue growth, which was slower than Microsoft and Google’s cloud growth rates of 39% and 32%, respectively.

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AWS has also been the focus of recent analyst coverage for Amazon.com, Inc. (NASDAQ:AMZN)’s shares. For instance, Guggenheim initiated coverage on December 10th as it set a Buy rating and a $300 share price target. The research firm cited AWS as the reason behind its coverage and shared that the business’s 3.8-year backlog had touched $200 billion in Q2. Cramer also discussed the AWS business. He insisted that the cloud business will drive the narrative, and commented on Amazon.com, Inc. (NASDAQ:AMZN) after BMO Capital raised the share price target to $304 from $300 and kept an Outperform rating, and raised the Q1 2026 AWS cloud growth estimate to 24% from an earlier 23%. Cramer’s optimism is met by hedge fund sentiment as well, with 332 of the 978 hedge funds part of Insider Monkey’s database having disclosed a stake to make Amazon.com, Inc. (NASDAQ:AMZN) the one with the most hedge fund holders:

“Little noticed in the chaos that is the data center, mega, hyper, is a piece put out by BMO today that I thought was really good. BMO is talking about how Amazon Web Services, it’s going to grow to 24 from 23, that would be major. It talks about a lot of growth next year. That is the division that has crushed the stock. Now, again, I’m not pushing any of these stocks. I am saying that if you could get with 30 times earnings, next year’s earnings, with some certainty about AWS growing, then Jassy’s going to get his way out of this thing. It’s going to be terrific. I wish it was about Alexa and how great she is. I wish it was about how they’re going to do same day food, it’s not. It’s about AWS. The growth in AWS is going to surprise and Jassy is going to get there.”

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
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  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
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