Amazon stock price may rebound: AI investment reshapes growth logic

Recently, several market analysts believe that Amazon. com, Inc.'s stock price is on the brink of a rebound. Although Amazon's stock price has fallen by about 3% so far this year, significantly lagging behind other tech giants, the underlying reason is not the company's weak fundamentals, but rather its relatively lagging layout in the AI (artificial intelligence) field. Nowadays, the situation is undergoing a transformation.
💡  AI layout accelerates, Amazon re enters the 'technology core circle'
Frances Stacy, a financial analyst from Scarlet Oak Financial, pointed out that Amazon has always been a "veteran stable player" in traditional cloud computing services (AWS), but once lagged behind Microsoft (Azure) and Google (Gemini) in the AI race.

However, with Amazon's significant investment in Anthropic (Claude model) and strategic partnership with IBM, Amazon is rapidly filling the gaps in AI. Anthropic's AI model "Claude" is gradually expanding its market share in the enterprise market, while Amazon has become an important ecological supporter with AWS's infrastructure and computing power advantages.

Stacy believes that Amazon's stock price is still mainly based on traditional valuation logic and does not fully reflect the potential of AI dividends - once the market re prices, Amazon may usher in a new upward cycle.

☁️  AWS growth slows down, but structural transformation is underway
The second quarter data shows that AWS (Amazon Web Services) revenue increased by 17.5% year-on-year, which has slowed down compared to previous quarters; During the same period, Microsoft Azure grew by 26% and Google Cloud grew by 32%. On the surface, AWS may appear to be lagging behind in terms of growth rate, but in fact, it is in the stage of strategic transformation.

For a long time, AWS has been centered around IaaS (Infrastructure as a Service), providing customers with a flexible cloud architecture. But now, enterprises are more inclined towards "AI first" cloud platforms - not only computing power, but also the ability to integrate models and data.

Amazon is filling the gap in its ecosystem by integrating generative AI capabilities such as Bedrock, Claude, and Titan models, shifting AWS from a simple cloud computing platform to an AI driven comprehensive cloud ecosystem. Although this transformation may affect growth in the short term, it is expected to increase stickiness and profitability in the medium to long term.

🧾  Investor perspective: Decline is a good opportunity for layout
Mairs&Power Balanced Fund, an investment fund, purchased Amazon stocks in the second quarter of 2025 and stated in an investor letter:

Amazon has leading advantages in both global retail and cloud computing. The recent stock price correction is a short-sighted reaction of the market, providing long-term investors with layout opportunities. ”

In addition, analysts generally believe that Amazon's future value will not only come from e-commerce and AWS, but also from the comprehensive integration of its AI ecosystem and business acceleration.