Amazon (AMZN) Seen as One of the Strongest AI Bull Cases Heading Into 2026, Bernstein Says

Amazon.com, Inc. (NASDAQ:AMZN) is one of the AI Stocks Making Waves on Wall Street. On January 15, Bernstein SocGen Group analyst Nikhil Devnani reiterated an “Outperform” rating on the stock with a $300.00 price target. The analyst sees 2026 as the strongest bull case story ever since the pandemic, citing a palatable entry point for AMZN.

In particular, the two performance indicators seen for Amazon are AWS revenue growth and retail margins, with both appearing to accelerate this year. Analysts at Bernstein SocGen believe AWS growth will "correlate closely as capacity is brought online" and also "re-establish AWS as a market leader/winner in an AI-fueled expanding hyperscaler TAM."

Discussing retail, Devnani noted how fears of AI disruption are likely overdone, as this year’s AI shopping assistants product launches are not too dissimilar from where Google stood at the start of last year.

The tech giant, Devnani said, is poised to deliver material gross margin expansion through the year.

“Amazon is one of the best positioned companies to deliver material gross margin expansion as we go through the year led by fulfillment and logistics-focused robotics. Tighter cost controls on discretionary initiatives, headcount efficiencies, and capitalization of Project Leo (Kuiper) should all contribute to retail margins expansion."

Amazon.com, Inc. (NASDAQ:AMZN) is a global e-commerce and cloud computing giant.

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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