AMZN Stock Turns Positive For 2026 On AWS Momentum: Analyst Calls CEO Jassy's Shareholder Letter 'Most Impactful’ Yet

• Amazon CEO Andy Jassy said the company is well-positioned for the AI upcycle and revealed $15 billion in ARR from cloud AI services and $20 billion in ARR from its chips business.
• AI is a once-in-a-generation technological shift that will transform nearly every customer experience, Jassy said in his annual shareholder letter.
• Stocktwits sentiment for AMZN flipped to ‘bullish’ from ‘bearish.’

Amazon.com, Inc. shares gained their most in over four months on Thursday and turned positive for the year after CEO Andy Jassy released his annual shareholder letter.

In the 5,000-word letter, Jassy said Amazon’s cloud unit was clocking $15 billion in revenue annually from AI services, revealing the figure for the first time, and defended the company’s $200 billion in capital expenditure for the year. 

"We're not investing ... on a hunch," Jassy said. "Of the AWS capex we expect ​to spend in 2026, much of which will be monetized in 2027-2028, we already have customer commitments for a substantial portion of it." 

Jassy described AI as a once-in-a-generation technological shift that will transform nearly every customer experience and have an impact on industries from shopping and entertainment to healthcare and software development. He highlighted that AI would become cheaper over time due to improvements in chip technology and efficiency.

Jassy also disclosed that Amazon’s custom chips business had hit an ⁠annualized revenue run-rate of over $20 billion, doubling from the $10 billion disclosed alongside fourth-quarter results. 

AMZN Stock’s Four-Day Streak

Amazon shares gained 5.6% on Thursday. The stock has gained for four straight days, cumulatively over 13%, and is now up 1.2% for the year. 

Alphabet is the only other Magnificent Seven stock that is in the green for 2026.

Analyst, Retail View On AMZN

After the letter, William Blair added Amazon to its ‘Conviction list,’ a curated set of its highest-confidence stock picks that the firm believes have the strongest potential to outperform over the long term.

Building on a stronger defense of the AI strategy in the 2024 letter, this was Jassy's most impactful letter to date, presenting the clearest defense and incremental proof points to support the business's direction, the research firm said in its investor note. The firm maintained its ‘Overweight’ rating.

Currently, 64 of the 68 analysts covering the AMZN recommend ‘Buy’ or higher, and four recommend ‘Hold,’ per Koyfin. Their average price target of $281.27 implies a 20% upside from the stock’s last close.

On Stocktwits, the retail sentiment for AMZN flipped to ‘bullish’ from ‘bearish.’

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