Amazon.com, Inc. has been highlighted as one of billionaire Ken Fisher’s latest picks, putting Amzn back in focus as a top AI stock. The appeal is not just the size of the company. It is the way Amazon is using its cloud infrastructure, Trainium custom AI chips and a close partnership with Anthropic to push deeper into the market that Andy Jassy has called a “once-in-a-lifetime” technology shift.
That search interest makes sense now because Amazon’s share price has already done some of the work for investors. The stock is up 22% over the past year and 12.2% year-to-date, and the latest analyst and portfolio attention is coming as Wall Street keeps circling the company’s AI exposure. Truist raised its price target to $320 from $310 on May 29 and kept a Buy rating, pointing to AWS revenue estimates and Amazon’s partnerships with Anthropic and OpenAI as part of the case.
What makes Amazon stand out in that mix is scale. Anthropic is expected to spend more than $100 billion using Amazon’s cloud services, while Amazon may invest as much as $25 billion in Anthropic. A large part of that investment depends on performance milestones, which gives the story an important catch: the headline numbers are big, but not all of the money is guaranteed to land the same way or on the same timetable.
Amazon also does not trade like a company disconnected from the market’s broader valuation debate. Its forward price-to-earnings ratio is 25.64, below the total market’s 27.66, which helps explain why the name keeps showing up in conversations about both growth and relative value. For investors trying to decide whether the AI story is already priced in, that gap is part of the attraction.
Still, the bullish case is running alongside a less comfortable reading of the same business. Vulcan Value Partners said Amazon was one of seven material detractors to performance in its Q1 2026 investor letter, even after saying the company reported strong fiscal-year and fourth-quarter results. The firm said AWS revenue rose 24% in the fourth quarter, advertising revenue grew 22% and AWS is benefiting from AI-driven demand, while also warning that Amazon’s capital spending is expected to rise more than 50% in 2026 to about $200 billion.
That spending plan is the real test ahead. Amazon is building for AI demand, but the payoff will depend on whether AWS growth keeps accelerating and whether the company can turn its huge capital outlay and Anthropic commitments into durable returns. Investors may like the story today, but the next proof point is whether Amazon can keep delivering enough to make a $200 billion spending year look like discipline rather than ambition.
