Amazon Stock Price Predicted to Soar to New Highs by End of 2026

Amazon's recent earnings report has sparked excitement among investors, with its stock price spiking 20% before dropping to a 15% gain for the year. However, long-term bulls are piling into this stock, and experts believe it could ignite a year-end rally leading to new highs by the end of 2026.

The company's cloud computing division, Amazon Web Services (AWS), is thriving due to high demand from companies developing or deploying artificial intelligence applications. AWS is the largest cloud provider in the world, and its revenue grew 37% year over year during the second quarter.

CEO Andy Jassy mentioned that his company does not have enough computing capacity to meet demand in 2026 and will likely be in the same situation in 2027. Management is already seeing 2028 demand pop up, indicating that this elevated spending will persist.