--- title: "Amazon's AI Bet Wins Big As Analyst Sees $1 Trillion AWS Opportunity" type: "News" locale: "en" url: "https://longbridge.com/en/news/294537966.md" description: "Amazon stock surged over 15% following a strong Q2 earnings beat, driven by AWS backlog growth of 150% year-over-year to $496 billion. BNP Paribas analyst Nick Jones highlighted AWS's potential as a $1 trillion opportunity and maintained a Buy rating with a $345 price target. Amazon reported net sales of $201 billion and raised its 2026 capital spending outlook to $220 billion, citing AI infrastructure demands." datetime: "2026-07-31T16:06:54.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/294537966.md) - [en](https://longbridge.com/en/news/294537966.md) - [zh-HK](https://longbridge.com/zh-HK/news/294537966.md) --- # Amazon's AI Bet Wins Big As Analyst Sees $1 Trillion AWS Opportunity **Amazon.com, Inc.** (NASDAQ:AMZN) stock gained over 15% on Friday as investors reacted to a double beat in quarterly results and upbeat cloud/AI commentary. **BNP Paribas** analyst **Nick Jones** said Amazon delivered a strong second quarter, with AWS momentum supporting higher AI-related investment and a path to a much larger cloud opportunity. ## AWS Strength Supports The Bull Case Jones kept a positive view on Amazon with a $345 price forecast, implying 46% upside from the July 30 price of $235.50. He said Amazon beat expectations across the board, driven mainly by AWS and advertising services. Worldwide net sales reached $201 billion, about 2% above the $197 billion consensus estimate. AWS beat consensus by about 4%, while advertising services topped expectations by about 3%. Jones said AWS backlog grew more than 150% year over year and 36% quarter over quarter to $496 billion, supporting Amazon’s elevated investment levels. ## Amazon Profit And EBITDA Beat Expectations Jones said operating income came in at $27.5 billion, about 16% above the $23.6 billion consensus estimate. Adjusted EBITDA reached $53.5 billion, about 5% above the $50.8 billion estimate. He said Amazon remains positioned as a key implementation layer in the AI ecosystem, while its other businesses can benefit from AI integrations. Jones also said management now sees AWS as at least twice its previous several-hundred-billion-dollar opportunity and potentially a $1 trillion business over time. ## Guidance Reflects Prime Day Shift And Higher Capex Jones said Amazon guided third-quarter worldwide net sales to $197 billion to $202 billion, with the midpoint about 2% below the $204 billion consensus estimate. However, he said growth would be about 400 basis points higher after excluding the Prime Day shift between 2025 and 2026. Amazon guided operating income to $22.5 billion to $26.5 billion, with the midpoint slightly below the $25.1 billion consensus estimate. The company also raised its full-year 2026 capital spending outlook to $220 billion from $200 billion, citing higher memory costs. Jones attributed Amazon’s after-hours gain to strong second-quarter results, robust AWS momentum and better visibility into favorable data-center return dynamics. The stock carries a Buy rating with an average price forecast of $326.10. Recent analyst moves include: - **DA Davidson**: Neutral (Maintains forecast to $250.00) (July 31) - **Wells Fargo**: Overweight (Raises forecast to $328.00) (July 31) - **Cantor Fitzgerald**: Overweight (Lowers forecast to $320.00) (July 31) ## Amazon Price Action **AMZN Stock Price Activity:** Amazon.com shares were up 15.09% at $271.03 at the time of publication on Friday, according to Benzinga Pro data. _Photo via Shutterstock_ **Read Also: Azure Ignites Microsoft Stock: AI-Fueled Earnings Beat Sparks 9% Rally** ### Related Stocks - [AMZN.US](https://longbridge.com/en/quote/AMZN.US.md) - [AMZW.US](https://longbridge.com/en/quote/AMZW.US.md) - [AMZU.US](https://longbridge.com/en/quote/AMZU.US.md) - [AMZZ.US](https://longbridge.com/en/quote/AMZZ.US.md) - [AMZD.US](https://longbridge.com/en/quote/AMZD.US.md) - [AMZO.US](https://longbridge.com/en/quote/AMZO.US.md) - [AMZY.US](https://longbridge.com/en/quote/AMZY.US.md) - [AZYY.US](https://longbridge.com/en/quote/AZYY.US.md) - [AMZP.US](https://longbridge.com/en/quote/AMZP.US.md) - [MAGX.US](https://longbridge.com/en/quote/MAGX.US.md) - [WFC.US](https://longbridge.com/en/quote/WFC.US.md) - [MSFT.US](https://longbridge.com/en/quote/MSFT.US.md) - [WFC-D.US](https://longbridge.com/en/quote/WFC-D.US.md) - [WFC-L.US](https://longbridge.com/en/quote/WFC-L.US.md) - [WFC-Y.US](https://longbridge.com/en/quote/WFC-Y.US.md) - [WFC-C.US](https://longbridge.com/en/quote/WFC-C.US.md) - [WFC-Z.US](https://longbridge.com/en/quote/WFC-Z.US.md) - [WFC-A.US](https://longbridge.com/en/quote/WFC-A.US.md) ## Related News & Research - [Prediction: CEO Andy Jassy will raise Amazon's full-year 2026 capex guide on July 30](https://longbridge.com/en/news/293883787.md) - [Recursive Superintelligence signs $400 compute deal with Amazon](https://longbridge.com/en/news/294074017.md) - [Amazon cracks down on use of AI images by sellers after New York law](https://longbridge.com/en/news/293681872.md) - [Amazon's Zoox Gets Approval For Paid Robotaxi Service In The U.S.](https://longbridge.com/en/news/294419884.md) - [Amazon Stock Trades Below Its 50-Day Average With Earnings Just a Week Away](https://longbridge.com/en/news/293624943.md)