Amazon (AMZN) stock has risen just shy of 5% YTD, with April’s stock crash making most of its gains this past year irrelevant. With its AI prospects booming and AWS cloud computing looking promising, Amazon has plenty of potential in 2026. As a result, there are varying bullish stock forecasts for AMZN next year, and many experts on Wall Street are bullish that the magnificent-7 grouping will be led by Jeff Bezos’ e-commerce giant.
The latest bullish forecast for Amazon (AMZN) comes from Evercore ISI tech analyst Mark Mahaney. The expert thinks Amazon has about 50% upside potential next year, also labeling AMZN as a top pick. Mahaney particularly praised growth at AWS, growing demand for new Trainium AI chips, further strong growth in advertising revenue, and a ramp in the new Alexa+. “At the end of the day, Amazon remains a high-quality compounder (25% EPS compound annual growth rate), with solid double-digit revenue growth, expanding operating margins, and free cash flow likely to increase materially in a 24-month timeframe,” Mahaney said.
50% growth from current prices would put Amazon (AMZN) shares at around $345, a huge jump from its current ATH. It’s also noteworthy that in the last 5 years, AMZN is only up 39%. Therefore, a 50% upside in one single year could prove to be one of Amazon’s best performances on the US stock market.
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Amazon (AMZN) stock is positioned for strong growth in 2026, with analysts predicting upside potential driven by cloud services, advertising, and AI advancements. Truist Securities analyst Youssef Squali forecasts Amazon’s growth at 10.5% in 2026, down from 12.1% in 2025, fueled by strong growth factors and AI-driven services. Amazon’s proposed deal with OpenAI could prove a worthy catalyst to send AMZN shares higher next year. Indeed, the e-commerce giant is in talks with Sam Altman’s OpenAI, which hosts the world’s top AI platform ChatGPT, for a potential investment of $10 billion.
Furthermore, Amazon saw AWS revenue growth accelerate to 20% last quarter, and the company said it was capacity-constrained. As such, it’s boosting its capital expenditure (capex) budget to try to meet growing demand. This could mean a solid start to the year that will set the pace for AMZN to climb at the beginning of 2026.