Amazon AWS Growth Slows, Nvidia Emerges as Better Investment Choice
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2d ago
0mins
Source: NASDAQ.COM
- AWS Profitability: Amazon's operating margin for its non-AWS business was only 4.1% for the first nine months of 2025, while AWS boasted a 35.6% margin, highlighting its role as a high-margin cash cow, even as growth slows, remaining a crucial pillar for Amazon's overall business.
- Nvidia Market Performance: Nvidia's stock surged 38.9% in 2025, significantly outperforming Amazon's 5.2%, indicating its strong growth potential in AI and data centers; while Amazon's valuation has decreased, Nvidia's business model remains more attractive.
- New Product Launch: Nvidia showcased its new Rubin architecture at CES, featuring six chips designed for AI, robotics, and autonomous driving, with deployments to hyperscalers, including AWS, expected in the second half of 2026, further solidifying its market position.
- Investment Recommendation: Despite Amazon's forward P/E ratio of 30.1 being lower than Nvidia's 39, analysts still recommend Nvidia as the better investment choice for 2026, particularly in light of ongoing innovations in the AI sector.
Analyst Views on AMZN
Wall Street analysts forecast AMZN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AMZN is 294.69 USD with a low forecast of 250.00 USD and a high forecast of 340.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
47 Analyst Rating
46 Buy
1 Hold
0 Sell
Strong Buy
Current: 239.120
Low
250.00
Averages
294.69
High
340.00
Current: 239.120
Low
250.00
Averages
294.69
High
340.00
About AMZN
Amazon.com, Inc. provides a range of products and services to customers. The products offered through its stores include merchandise and content it has purchased for resale and products offered by third-party sellers. The Company’s segments include North America, International and Amazon Web Services (AWS). It serves consumers through its online and physical stores and focuses on selection, price, and convenience. Customers access its offerings through its websites, mobile apps, Alexa, devices, streaming, and physically visiting its stores. It also manufactures and sells electronic devices, including Kindle, Fire tablet, Fire TV, Echo, Ring, Blink, and eero, and develops and produces media content. It serves developers and enterprises of all sizes, including start-ups, government agencies, and academic institutions, through AWS, which offers a set of on-demand technology services, including compute, storage, database, analytics, and machine learning, and other services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
