Amazon.com, Inc. (AMZN) Named Top AI Pick as Morgan Stanley Sees AWS Acceleration and Agentic Upside

AMZN is Top Pick arsenic AWS/Retail some under-appreciated GenAI winners. AWS seems acceptable to further accelerate arsenic capex output model shows however it could turn 30%+ successful ’26/’27. We besides sermon wherefore AMZN is an agentic victor with leverage and wherefore partnerships would beryllium positive/ manageable

The steadfast anticipates AWS gross maturation to transcend 30%, supported by a beardown backlog that reflects durable endeavor demand. However, 1 bottleneck for AWS maturation is that it is partially constrained by information halfway capacity, which is wherefore superior expenditures volition beryllium important for acceleration.

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Beyond cloud, the steadfast highlighted Agentic Commerce arsenic different catalyst for AMZN. It believes however AMZN is apt to grow horizontal AI partnerships and besides fortify its vertical enactment done its AI-powered buying assistant, Rufus.

AMZN present trades astatine ~19X our ’27 GAAP EPS…for ~20% guardant EPS growth. This is simply a 40% discount to peers connected a PEG basis…as the sanction is caught successful GenAI communicative transverse currents and question marks astir ROIC [return connected invested capital] connected its AI-related capex. That said, we stay bullish done this uncertainty and proceed to deliberation AMZN is the astir under-appreciated GenAI victor of our coverage.

Amazon.com Inc. (AMZN) is an American exertion institution offering e-commerce, unreality computing, and different services, including integer streaming and artificial quality solutions.

While we admit the imaginable of AMZN arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you’re looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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Disclosure: None. This nonfiction is primitively published at Insider Monkey.