This article first appeared on GuruFocus.
Amazon (AMZN, Financials) wants to be worth $3 trillion by 2026. To get there, it is speeding up its investments in cloud infrastructure and artificial intelligence. The corporation is spending $125 billion to make AWS bigger and to develop new processors like Trainium3, which are four times faster than older ones.AWS, Amazon’s most lucrative subsidiary, grew by 20% in late 2025 and might increase by 30% in 2026 as it works through a $200 billion backlog of customers. According to analysts, this comeback is the start of a new growth cycle driven by AI workloads and business demand.To save expenses, the corporation is also putting robots and AI-powered quality systems in all of its fulfillment locations. By 2026, analysts think that automation might take over 50,000 manual jobs and save nearly $7.5 billion a year.Analysts are still positive, even if the stock market did worse than other indices in 2025. Mark Mahaney of Evercore ISI picked Amazon as his best internet stock for 2026. Doug Anmuth of J.P. Morgan also kept his Buy rating with a $305 price target, saying the stock was undervalued and the company was doing well.There are 44 Buys and one Hold on Amazon, which means it is a Strong Buy. Investors are betting on AI, AWS, and automation to drive long-term profit growth, and the average price target of $296.12 suggests that the stock may go up by about 28%.