Amazon Stock Climbs 3.5% After JPMorgan Names It a Top AI Pick, Citing Faster AWS Growth and $1 Trillion Goal

Shares of Amazon.com Inc. climbed 3.5% on Monday after JPMorgan named the e-commerce and cloud giant one of its top artificial intelligence picks, citing rapid growth expected at its Amazon Web Services cloud unit.

Amazon shares rose $9.08, or 3.50%, to $268.38 as of 11:12 a.m. Eastern time. The stock had opened up 5.67%.

JPMorgan's call

The bullish note was the main catalyst. JPMorgan analyst Doug Anmuth named Amazon and Meta Platforms as picks for the bank's analyst focus list in a Monday client note, saying the bank sees big revenue over the longer term for Amazon, driven by cloud segment growth.

Anmuth highlighted ambitious cloud targets. He wrote that "AMZN now expects AWS revenue growth of 40%+ in 2027 & 2028," and for AWS to reach revenue of $1 trillion in the next five to 10 years, with improving capex payback.

Amazon shares were up 3% in the premarket on Monday, and Meta was up 2.5%.

Cloud momentum

Investors see AWS as a major AI beneficiary. Institutional investors increasingly view Amazon as a primary beneficiary of durable corporate IT spending and monetization across generative AI infrastructure.

Enterprise clients are expanding long-term committed spend, easing prior market concerns about capacity constraints and pricing pressure.

Tech rebound

The gain came amid a broad rally in large technology stocks. Amazon and Meta were each up 5% early Monday, while Alphabet, Apple, Microsoft and Tesla all gained more than 2%.

The S&P 500 and Nasdaq Composite had lost ground for four consecutive weeks before Monday.

The market's AI concerns have not disappeared. Fears that Democratic midterm wins could lead to tighter AI-industry regulation and lower sector investment had driven investors out of tech and AI-related stocks last week.

What's next

Investors will watch whether AWS growth continues to accelerate and whether Amazon's heavy AI spending delivers the returns analysts expect. A busy week of earnings and inflation data could also shape the broader tech trade.

This article is for informational purposes only and is not investment advice.