Amazon.com Inc (NASDAQ:AMZN)<\/a> is significantly underappreciated by Wall Street as artificial intelligence commitments pile up in its cloud division, UBS says, maintaining a Buy rating on the stock with a $333 price target.<\/p>\nThe bank\u2019s analysis found that Bedrock, Amazon’s AI model platform, carries roughly $35 billion in backlog as of the end of Q1 2026, representing approximately 300% year-over-year growth.<\/p>\n
UBS forecasts AI will account for 26% of AWS revenue by the end of 2026, rising to 30% in 2027, underpinned by large contracts signed with both Anthropic and OpenAI.<\/p>\n
The firm’s revenue estimate for AWS stands at $175.9 billion for 2026, reflecting 36% year-over-year growth, well ahead of the Street consensus of $166.6 billion and 29% growth.<\/p>\n
The divergence centers on the backlog UBS expects AWS to add through 2026 and beyond, currently pegged at $350 billion.<\/p>\n
That gap compounds into 2027, where UBS’s operating income estimate runs approximately 40% above consensus. “(W)e believe the Street will continue to catch up to where we are now,” the bank’s analysts wrote.<\/p>\n
Beyond AWS, UBS cited several other drivers behind its bullish stance, including accelerating same-day delivery expansion and a push into groceries, improving e-commerce unit economics as volume growth outpaces costs, and growing ad revenue potential from Prime Video as the service scales globally alongside live sports rights.<\/p>\n
UBS has previously described Amazon shares as a “coiled spring,” adding that with each quarterly report this year, it expects that thesis to gain further validation.<\/p>\n","protected":false},"excerpt":{"rendered":"Amazon shares have room to run as AWS AI backlog hits $35B, UBS says Proactive uses images sourced…\n","protected":false},"author":2,"featured_media":73112,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[129],"tags":[6006,20702,223],"class_list":["post-73111","post","type-post","status-publish","format-standard","has-post-thumbnail","category-ubs","tag-amazon","tag-aws","tag-ubs"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ch\/116648663272003771","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/73111","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/comments?post=73111"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/73111\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media\/73112"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media?parent=73111"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/categories?post=73111"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/tags?post=73111"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
![\"Amazon](\"https:\/\/www.europesays.com\/ch\/wp-content\/uploads\/2026\/05\/1a5f5a8840185a447d0507e4e5cadcaf.jpeg\")
Amazon shares have room to run as AWS AI backlog hits $35B, UBS says Proactive uses images sourced from Shutterstock <\/p>\n