Analysts see Amazon reaching $400 in two years as AWS growth and AI infrastructure investments drive long-term earnings potential.
Amazon’s stock is projected to hit $400 by 2026, supported by 28% AWS growth and a $20 billion chips business run rate. The company trades at 26x forward earnings despite 75% year-over-year earnings acceleration, making the target appear conservative.
CEO Andy Jassy’s $200 billion capex plan for 2026 has weighed on free cash flow, which collapsed 95% to $1.2 billion. However, AI demand, including 7 GW Trainium commitments from OpenAI and Anthropic, justifies the spending. Shares are down 4.38% over the past month amid investor concerns over European cloud regulations and macro volatility.
Amazon’s advertising segment now generates $70 billion in trailing twelve-month revenue, adding to its diversified growth drivers. The stock currently trades at $256.52, up 11.13% year-to-date but lagging broader tech gains.