TD Cowen Stays Bullish on Amazon (AMZN), Sees Multiple Growth Drivers Into 2026

Amazon.com, Inc. (NASDAQ:AMZN) is one of the AI Stocks Analysts Are Watching Closely.  On December 10, TD Cowen analyst John Blackledge reiterated a “Buy” rating on the stock with a $300 price target, calling Amazon the firm’s “Top Mega Cap Internet Pick.” The firm’s optimism reflects structural tailwinds in artificial intelligence, Ads momentum, and margin expansion.

TD Cowen noted that it sees three key drivers for Amazon shares in 2026. These include accelerating AWS revenue growth, eCommerce and advertising momentum, and continued operating margin expansion.

AWS revenue growth is anticipated to accelerate in 4Q25 and accelerate further in both ’26 and ’27. This growth is being fueled by “Core and AI workload demand and higher AI capacity amid the historic AI infrastructure build.”

Amazon’s retail and ad businesses are also likely to gain momentum. The firm believes that the retail segment should see strong growth in ’26 driven by cont’d record delivery speed (which drives purchase conversion), expansion of same day perishables biz, & investment in rural markets.

Meanwhile, it forecasts that Amazon’s 2026 advertising revenue will grow at a high teens pace year over year. This growth will be powered by sponsored products, demand-side platform momentum, and an expanding Prime Video ad business.

Lastly, the firm forecasts continued margin expansion for Amazon.

“ Continued Margin Expansion: We forecast AMZN ’26 Op Inc of $104BN, ~4% above consensus, yielding 12.8% Op Inc (GAAP) margins, as high margin Ads and AWS businesses continue ramping while eCommerce margins benefit from lower cost to serve.”

Amazon.com Inc. (AMZN) is an American technology company offering e-commerce, cloud computing, and other services, including digital streaming and artificial intelligence solutions.

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Disclosure: None.