Amazon's AI Investment Sparks Market Interest
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 22 2026
0mins
Should l Buy AMZN?
Source: Fool
- AI Investment Plan: Amazon plans to invest $200 billion in artificial intelligence this year, the highest among hyperscalers, with CEO Andy Jassy stating that they will leverage AWS demand signals to convert into capital returns, demonstrating confidence in future profitability.
- Cloud Business Growth: Amazon Web Services (AWS) has a run rate of $142 billion, with fourth-quarter sales increasing 24% year-over-year, the highest growth rate in years, and new deals with industry giants like Visa and Salesforce are expected to benefit from clients shifting spending to the cloud.
- E-commerce Expansion: Amazon launched the Amazon Now service, delivering orders within 30 minutes in several markets, with Prime members in India tripling their shopping frequency, indicating significant potential sales boosts from this service.
- Advertising Business Growth: Advertising sales grew 22% year-over-year in the fourth quarter, with Prime Video ads attracting 315 million viewers, and Amazon's new AI features reducing campaign creation time from weeks to hours, further enhancing the appeal of its advertising business.
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Analyst Views on AMZN
Wall Street analysts forecast AMZN stock price to rise
44 Analyst Rating
41 Buy
3 Hold
0 Sell
Strong Buy
Current: 210.570
Low
175.00
Averages
280.01
High
325.00
Current: 210.570
Low
175.00
Averages
280.01
High
325.00
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.
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- Market Risks and Opportunities: Despite risks of waning market appetite for AI software, Amazon's diversified business model and robust operating cash flow present an attractive long-term investment opportunity, allowing investors to capitalize on the current stock price pullback for future growth.
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- Amazon Acquisition Plans: Amazon is reportedly in talks to acquire Globalstar to accelerate its satellite internet service rollout, which could significantly enhance its competitive position in the communications market.
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