Amazon aims to continue its data expansion business through 2026, which could provide an impetus to the value of its AMZN stock. AI will play a big role for e-commerce giants in 2025, giving AWS a big boost. Amazon has committed $125 billion in capital spending in 2025, the majority of which will go toward AWS infrastructure. The data center pipeline shows no signs of slowing down, and there is likely to be more spending going towards this, and perhaps even more profits.
In December 2025, Amazon already announced some promising upgrades that it plans to work on in 2026. This includes a $7 billion, 14-year framework agreement with India’s Telangana to expand AWS Hyderabad’s infrastructure, as well as a $15 billion commitment for a facility in northern Indiana that will provide 2.4 gigawatts of capacity. The new data center will further push Amazon to the forefront of the growing AI wave.
Analysts analyzing Amazon’s stock stress that long-term growth will actually depend on AWS’s ability to maintain its leadership position over Microsoft Azure and Google Cloud while simultaneously increasing profit margins through warehouse automation and other efficiency improvements. The rise of AI data centers will accelerate AWS’s long-term growth, which is fueling AMZN’s bullish price forecast.
Additionally, other factors besides AI are driving Amazon (AMZN) price predictions in 2026. Guggenheim analysts have initiated coverage of Amazon (AMZN) stock and set a $300 price target for the e-commerce giant. The company said the “holidays brought some cheer” to Amazon, and sales were steadily increasing. Additionally, Guggenheim noted that tariffs have been manageable so far and that “the most important and perhaps unnoticed thing” is the fact that the majority of the company’s insurance coverage is actually operating at or near peak gross margins.
As of this writing, the current consensus among 43 analysts is for an average price target of $294.71, with a high of $340 and a low of $250. AMZN is trading at $227, near the top of its 52-week range and above its 200-day simple moving average. Morgan Stanley also maintains its $300 price target, citing the benefits of automation as a key driver.
