Analyst Says Amazon (AMZN) Stock Has Been Stagnant But It's 'About to Change'

We recently published 10 Buzzing Tech and AI Stocks Everyone’s Talking About. Amazon.com, Inc. (NASDAQ:AMZN) is one of the stocks analysts were recently talking about.

Ken Gawrelski, Wells Fargo senior internet analyst, said in a recent program on CNBC that while Amazon shares look “stuck in neutral,” they can gain in the coming days. Here is how the analyst explained his bullish case for the e-commerce and Cloud giant:

"You’ve had accelerating industry growth at the same time that Amazon.com Inc (NASDAQ:AMZN) has kind of been stuck in neutral, right? And this is why we upgrade the shares today: we think this is about to change. Anthropic has been a core, key partner of Amazon.com Inc (NASDAQ:AMZN). Note that OpenAI, which has been a very big spender in cloud and the subject of a lot of the headlines you’ve no doubt reported about over the last three to four weeks, is more aligned with Microsoft and also does some work with Google, but really not with Amazon.com Inc (NASDAQ:AMZN). So Amazon has not had that exposure. We do think Anthropic has great momentum as a business and will be accelerating its compute spend. Notably, we think there will be a big capacity project that the two are working on together, which will benefit next year. We see it as a nice driver to AWS and an accelerant to the business."

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 potential of AMZN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, 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.