Amazon's AWS Growth Reaccelerates Ahead of Earnings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 27 2026
0mins
Should l Buy AMZN?
Source: Fool
- Cloud Market Share: Amazon Web Services (AWS) holds a 29% share of the global cloud market, maintaining its leading position despite fierce competition from Microsoft and Alphabet, showcasing its strong influence in the cloud computing sector.
- Growth Rebound: AWS reported a 20% growth in Q3 2025, marking its highest increase in 11 quarters, indicating a recovery in the cloud services sector and a resurgence in market demand.
- Backlog Situation: AWS had a backlog of $200 billion at the end of Q3, excluding new contracts, reflecting strong market demand and significant potential for future growth.
- AI Service Expansion: AWS offers a comprehensive suite of AI services, including tools for building custom large language models, with management indicating more features are on the way, which is expected to enhance its market competitiveness and attract more clients.
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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: 264.860
Low
175.00
Averages
280.01
High
325.00
Current: 264.860
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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- Surge in Custom Chip Revenue: Amazon's custom chips (Trainium and Graviton) generated $20 billion in annualized revenue last quarter, growing at a triple-digit rate, and are expected to become a significant revenue source, potentially surpassing its e-commerce business in the coming years.
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