Analysts have raised the Amazon stock target to a consensus between $281 and $287, citing accelerating growth in its AWS cloud division driven by AI demand. This implies roughly 40% upside from a share price of $201, even as shares are down about 11% year-to-date. The company’s forecast for 2026 hinges on AWS sustaining its growth to justify a massive capital spending cycle planned for the year.
Wall Street continues to move the Amazon stock target higher, with the current analyst consensus sitting between $281 and $287. This range implies around 40% upside from a recent share price of roughly $201.
Both Citi and JPMorgan lifted their Amazon stock target from $265 to $285, pointing directly at AWS AI demand as the catalyst. Amazon shares are also down about 11% year-to-date, widening the gap between its price and analyst targets.
The AWS division grew 24% year-over-year in Q4 2025, reaching $35.6 billion in revenue. This marked its fastest quarterly pace in 13 quarters while operating margin held steady at 35%.
Citi now expects Amazon AWS growth to reach 28%-29% in 2026, then jump to 37% in 2027. This projection is linked to the scaling of partnerships with Anthropic and OpenAI.
CEO Andy Jassy stated, “I’ve been thinking for the last number of years that AWS, call it 10 years from now, could be about a $300 billion annual revenue, run rate business.” The company’s custom Trainium and Graviton chips already generate over $10 billion in annual revenue.
Amazon plans to spend approximately $200 billion in capital expenditures in 2026, a significant increase from prior years. This spending pressured free cash flow, which fell 70% year-over-year to $11.2 billion in 2025.
JPMorgan analyst Doug Anmuth, who carries a $285 Amazon stock target, said, “Amazon is the most diversified mega-cap across revenues and profit and has various large growth opportunities — mixed sentiment and attractive valuation.” He also flagged Amazon’s $38 billion, seven-year cloud deal with OpenAI as a potential source of upside.
Evercore ISI analyst Mark Mahaney, who named Amazon his top internet pick for 2026, highlighted the company’s financial profile. He said, “At the end of the day, Amazon remains a high quality compounder (25% EPS compound annual growth rate), with solid double-digit revenue growth, expanding operating margins, and free cash flow likely to inflect up materially in a 24-month timeframe.”
