Data center infrastructure spending hit a record $61 billion in 2025, driven by AI workloads. Amazon doubled AWS power capacity and plans to double it again by 2027. With global data center revenue projected at $739.05 billion by 2030, Amazon’s growth in AI infrastructure could boost its stock in 2026.

Amazon’s stock has risen steadily, gaining 3.15% in the past 52 weeks and 5.81% year-to-date. Investors are paying a premium for Amazon’s outlook, with a forward P/E ratio of 31.7x. The company’s Q3 2025 financial results showed net sales of $180.2 billion, with operating income of $17.4 billion.

Amazon is expanding its AI infrastructure through the Nova portfolio, introducing new models and services. It also enhanced Bedrock AgentCore with controls and memory features for AI agents. Collaborations with SolarWinds highlight AWS as a vital AI infrastructure provider for enterprises, supporting automation and observability.

For Q4 2025, Amazon projects net sales of $206.0 billion to $213.0 billion, with operating income between $21.0 billion and $26.0 billion. Analysts expect earnings of $1.97 per share for the quarter and $7.17 for full-year 2025, anticipating growth of 5.91% for the quarter and 29.66% for the year.

Analysts rate Amazon a consensus “Strong Buy,” with a price target of $295.80 suggesting 27.4% upside. The company’s focus on AI infrastructure and data center expansion, combined with strong earnings growth estimates, positions it well for the $61 billion data center supercycle in 2026. Wall Street sees potential for continued share appreciation.

Read more at Yahoo Finance: A $61 Billion Reason to Buy Amazon Stock for 2026