AWS Momentum Supports Amazon.com’s (AMZN) Expanding AI and Cloud Strategy

SelfRugger

2026-02-12 15:54:10

AWS Momentum Supports Amazon.com’s (AMZN) Expanding AI and Cloud Strategy

Rizwan Siddiqui

Fri, February 13, 2026 at 12:39 AM GMT+9 3 min read

In this article:

AMZN

-2.26%

PROSF

+15.12%

Amazon Inc. (NASDAQ:AMZN) is among the best machine learning stocks to buy according to analysts. Following its Q4 2025 results, UBS lowered its price target on the stock to $301 from $311 on February 6. Amazon’s FY 2026 capital expenditure guidance of $200 billion surprised the market and UBS, which were expecting capex to be around $150 billion. According to UBS estimates, growth for Amazon’s cloud services unit, Amazon Web Services (AWS), will rise to 38% in 2026, doubling from 19% in 2025. Moreover, the firm expects Amazon to maintain mid-30% growth if elevated spending continues through 2027.

Earlier, on February 4, Bloomberg reported that AWS and Prosus NV had signed a multi-year cloud and artificial intelligence agreement to expand the latter’s technology footprint in Latin America, Europe, and India. Prosus will leverage AWS’s advanced cloud infrastructure and AI capabilities to develop new AI-first applications/products and enhance its service portfolio in these geographies.

On the deal’s prospects, Greg Pearson, Vice President, AWS Global Sales, said:

Prosus demonstrates how commerce companies are leveraging AI to transform customer experiences.” He added, “By combining AWS’s AI and machine learning capabilities with Prosus’s operational expertise across its portfolio, we’re changing how customers experience and discover products.

While the value of the deal was not disclosed, the Head of Prosus Ecosystem, Igor Cardoso, stated in an interview with Bloomberg that the deal could run into “hundreds of millions of dollars.”

AWS remains Amazon’s growth engine. In its earlier note on February 3, UBS said the market is not valuing a significant expansion opportunity in AWS, as it sees a potential doubling of AWS revenue by 2028 and a significant push toward cash flow generation.

Although Amazon Inc. (NASDAQ:AMZN) has had a lacklustre performance over the past year, analysts remain highly positive on the stock (~92% rating it Buy), with a consensus median price target of $285, implying a 38% upside.

AWS Momentum Supports Amazon.com’s (AMZN) Expanding AI and Cloud Strategy

Amazon.com Inc. (NASDAQ:AMZN) operates across e-commerce, digital content, advertising, and cloud computing. Its online and offline stores offer both in-house and third-party products, while its Amazon Web Services (AWS) division runs one of the world’s largest data center networks.

Amazon uses machine learning across its business, from product recommendations and pricing to logistics and fraud detection. In addition, through its Amazon Web Services, it provides machine learning tools and cloud infrastructure to other companies.

Story Continues

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: 12 Best Software Infrastructure Stocks to Buy According to Hedge Funds and Cathie Wood’s Stock Portfolio: Top 10 Stocks to Buy.

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

Terms and Privacy Policy

Privacy Dashboard

More Info

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.