Amazon.com, Inc. (NASDAQ:AMZN) is a top AI stock to watch per BofA Securities analyst. Amazon stock underperformed in 2025, but maintained retail execution. AWS sentiment worsened, resulting in lower forward EV/EBITDA multiple. However, AWS growth is expected to accelerate in 2026, driven by leadership changes and new capacity.

BofA believes that AWS growth will accelerate in 2026 due to new capacity, leadership changes, and strong Rufus usage growth. Long-term investors could benefit from Amazon’s proprietary tech improvements and AWS positioning as a lower-cost provider for AI inference cost efficiency. Amazon offers e-commerce, cloud computing, and AI solutions.

While Amazon (AMZN) is a strong investment, other AI stocks may offer greater upside potential with less downside risk. Consider exploring undervalued AI stocks for better investment opportunities. Check out reports on the best short-term AI stock for potential gains. Disclosure: None.

Read more at Yahoo Finance: AI Sentiment on Amazon (AMZN) Could Improve in 2026, BofA Says