TD Cowen Stays Bullish on Amazon (AMZN), Sees Multiple Growth Drivers Into 2026

Amazon.com, Inc. (NASDAQ:AMZN) is 1 of the AI Stocks Analysts Are Watching Closely.  On December 10, TD Cowen expert John Blackledge reiterated a “Buy” standing connected the banal with a $300 terms target, calling Amazon the firm’s “Top Mega Cap Internet Pick.” The firm’s optimism reflects structural tailwinds successful artificial intelligence, Ads momentum, and borderline expansion.

TD Cowen noted that it sees 3 cardinal drivers for Amazon shares successful 2026. These see accelerating AWS gross growth, eCommerce and advertizing momentum, and continued operating borderline expansion.

AWS gross maturation is anticipated to accelerate successful 4Q25 and accelerate further successful some ’26 and ’27. This maturation is being fueled by “Core and AI workload request and higher AI capableness amid the historical AI infrastructure build.”

Amazon’s retail and advertisement businesses are besides apt to summation momentum. The steadfast believes that the retail conception should spot beardown maturation successful ’26 driven by cont’d grounds transportation velocity (which drives acquisition conversion), enlargement of aforesaid time perishables biz, & concern successful agrarian markets.

Meanwhile, it forecasts that Amazon’s 2026 advertizing gross volition turn astatine a precocious teens gait twelvemonth implicit year. This maturation volition beryllium powered by sponsored products, demand-side level momentum, and an expanding Prime Video advertisement business.

Lastly, the steadfast forecasts continued borderline enlargement for Amazon.

“ Continued Margin Expansion: We forecast AMZN ’26 Op Inc of $104BN, ~4% supra consensus, yielding 12.8% Op Inc (GAAP) margins, arsenic precocious borderline Ads and AWS businesses proceed ramping portion eCommerce margins payment from little outgo to serve.”

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

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Disclosure: None.