AI Sentiment on Amazon (AMZN) Could Improve in 2026, BofA Says

Amazon.com, Inc. (NASDAQ:AMZN) is one of the AI Stocks Investors Are Watching Closely. On January 12, BofA Securities analyst Justin Post reiterated a Buy rating on the stock with a $303.00 price target. The firm sees potential improvements in AI sentiment for the stock in year 2026 driven by AI capacity growth, leadership changes, and rising Rufus usage.

BofA noted how Amazon stock was up only 5% in 2025, underperforming the S&P 500, which was up 16% and Nasdaq, which was up 20%. The company maintained retail execution, experiencing modest share gains and expanding margins.

However, BofA highlighted how sentiment on AWS positioning worsened nevertheless and resulted in a lower forward EV/EBITDA multiple by an estimated 15% year-over-year.

It anticipates AWS growth to accelerate this year, driven by factors such as leadership changes, new capacity, and strong Rufus usage growth. These changes will allow Amazon to improve its AI positioning as well as set up for an Agentic retail future.

“We believe AI sentiment could improve in 2026, with AWS growth likely to accelerate due to new capacity, recent AWS leadership changes that could drive change in AWS’s AI positioning, and strong Rufus usage growth setting up an agentic retail future. For long-term investors, if Amazon’s proprietary tech (LLM & Trainium) improves versus competitors, AWS’s positioning as a lower-cost provider could become a meaningful advantage as enterprises focus on AI inference cost efficiency.”

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

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.

READ NEXT: 11 AI Stocks on the Market’s Radar and 10 AI Stocks Gaining Attention on Wall Street

Disclosure: None.