Amazon Stock Poised for New All-Time High on Strong AWS Growth

Amazon's stock has been underperforming compared to its estimated value, but recent growth in AWS and advertising revenue could push it to a new all-time high. In the second quarter of fiscal year 2026, Amazon reported $200.6 billion in revenue, with AWS growing at 36.7%, its fastest pace in 18 quarters.

CEO Andy Jassy said 'AWS is booming right now,' and the company's backlog has reached $496 billion. The bull case for Amazon centers on AI monetization, with AWS AI revenue and Amazon's custom chip business both clearing $25 billion annualized run rates with triple-digit growth.

Jassy also stated that AWS could 'very possibly be a trillion dollar annual revenue business for us in time.' However, some analysts are concerned about the company's capital intensity, which has led to a trailing P/E of 35. Despite this, Amazon's price target is $326.19 over the next 12 months, implying a 31.41% upside and fresh all-time-high territory.