Amazon’s Moment May Finally Be Here
For years, Amazon was the quiet laggard of Big Tech — respected, profitable, but rarely celebrated by the market. Now, investors are starting to believe that narrative is about to flip.
Amazon.com Inc. (AMZN) bulls are betting the company is on the verge of reclaiming its leadership among the Magnificent Seven, powered by accelerating demand for cloud computing, a surge in artificial intelligence adoption, and a stock valuation that suddenly looks like a bargain.
The argument is simple: Amazon built the AI rails before the AI boom arrived — and the market is just starting to notice.
AWS: From “Falling Behind” to Front and Center
At the heart of Amazon’s renewed optimism is Amazon Web Services (AWS).
Once viewed as losing ground to rivals, AWS just posted its fastest growth in years, a turning point that investors say could reshape how the stock is perceived.
“An improvement in AWS should help materially in terms of the perception of the stock,” said Pat Burton of Winslow Capital, calling Amazon one of his largest overweights among Big Tech.
The momentum didn’t stop with earnings. Amazon followed up with:
A $38 billion deal to provide computing power to OpenAI
Reports that OpenAI may raise $10 billion from Amazon
Growing interest in Amazon’s Trainium AI chips
Rising confidence in its cloud and semiconductor roadmap
After years of defending itself against the “AWS is falling behind” narrative, Amazon appears to have flipped the script.
AI Everywhere: Cloud, Commerce, and Ads
While AWS grabs the headlines, AI’s impact runs deeper across Amazon’s empire.
E-commerce: Smarter demand forecasting and logistics optimization
Advertising: More precise targeting and higher-margin ad tools
Fulfillment: Efficiency gains across one of the world’s largest logistics networks
The result? Stronger margins without needing explosive revenue growth — a combination Wall Street loves.
A Valuation That Finally Makes Sense
Amazon’s years of underperformance have left it cheap by its own standards.
24x forward earnings, well below:
Apple
Microsoft
Alphabet
Far under its five-year average of 36x
After trailing the Magnificent Seven for seven straight years, Amazon now looks like the rare Big Tech name trading at a discount — not a premium.
“It Looks Like Google Did”
Wall Street is drawing comparisons to Alphabet’s stunning rebound.
Google spent years labeled an AI laggard. Then it unveiled a major upgrade to its Gemini AI model last March — and the stock exploded, rising 89% since.
“It looks like Google did 18 months ago,” said Nancy Tengler, CEO of Laffer Tengler Investments. “Things can change very quickly in this sector.”
Investors now see Amazon as the next domino.
Profits Catching Up to the Vision
Analysts are increasingly bullish on Amazon’s earnings power:
EPS growth:
+12% in 2026
+22% in 2027
Operating income:
+26% this year
+24% next year
Revenue growth:
~11% annually
Consensus estimates for 2026 net income have jumped 8.2% in just six months — a clear sign expectations are rising.
“It’s the AI name that hasn’t gotten the love,” said Clayton Allison of Prime Capital Financial. “It’s trading at a discount — and it built the infrastructure everyone wants to use.”
Notably, 95% of analysts surveyed rate Amazon a buy.
The Comeback Trade?
After years of playing defense, Amazon may finally be stepping back into the spotlight.
With AWS accelerating, AI embedded across its business, and valuations still lagging peers, investors see a familiar setup — one that previously played out with Google.
If that comparison holds, Amazon’s AI awakening could mark the start of its next great rally.
For a stock long considered “too big to surprise,” Amazon might be preparing to do exactly that.