Amazon (AMZN) AWS Growth Expected to Exceed 20% in 2026, Analysts Say

Amazon.com, Inc. (NASDAQ:AMZN) ranks among the best predictive analytics stocks to buy right now. In an August 27 review of Amazon.com, Inc. (NASDAQ:AMZN) capital expenditures and planned data center square footage, Morgan Stanley analysts stated that they have “more conviction that AWS growth has the potential to accelerate to 20%+ in ’26.” With a base case valuation of $300 and a bull case of $350, the firm further stated that this would be “ahead of our base model and key driver of AMZN’s multiple.”

The bank emphasized that AWS’s forward growth and competitive positioning in an early GenAI era remain the primary investor debate.

According to Morgan Stanley, demand from firms increasing generative AI workloads, such as Anthropic, as well as increased adoption of cloud computing, is contributing to a large backlog.

Amazon.com, Inc. (NASDAQ:AMZN) is a dominant American multinational technology company that operates in several industries, including e-commerce, cloud computing via Amazon Web Services (AWS), online advertising, digital streaming, and artificial intelligence. The company is a pioneer in harnessing data analytics and recommendations for e-commerce, utilizing technologies such as DynamoDB, Redshift, and EMR.

While we acknowledge the potential of AMZN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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