Amazon Web Services (AMZN) unleashed a torrent of artificial intelligence-related hardware and software during its re:Invent 2025 as the company continues to innovate and maintain its wide lead in the global cloud infrastructure race.
Analysts were impressed by the releases and the momentum and expect AWS to continue growing by 20%-plus over the coming quarters and years.
“We are incrementally confident in our 20%+ AWS growth projections through 2027, supported by continued core cloud demand and GenAI proof-of-concept projects moving into production as more infrastructure capacity comes online,” said Citi analysts, led by Ronald Josey, in an investor note.
Citi currently projects AWS revenue to increase by 23% during the entirety of 2026.
“We believe core cloud migration demand is robust as Amazon’s ramping capacity (~5 GW of incremental infra will be live by year-end and strong support for Trainium as Trainium3 launches) along with its new Agentic workflow products and new Nova models should support ongoing GenAI demand,” Josey added.
Citi reiterated its Buy rating and $320 price target.
Meanwhile, Wedbush reiterated its Outperform rating and $340 price target.
“We view the implied level of demand in the coming quarters constructively given the momentum of backlog growth and a higher capex guide for 2025,” said Wedbush analysts, led by Scott Devitt, in an investor note. “Further, management has shared that AWS growth would have been higher this year if not for near-term capacity constraints.”
The laundry list of announcements by Amazon on Tuesday demonstrated the focus of the company to expand its AI capabilities.
“AWS has already surpassed a $130B+ run rate, and the company is pursuing growth across the AI stack,” Devitt added. “Next quarter, we expect AWS growth of +22.0% Y/Y, reflecting increased capacity and accelerating demand across AI and core services. AWS has already doubled its capacity relative to 2022 and is on pace to double again by 2027.”
AWS continues to hold its lead as the world’s most prolific cloud provider. Amazon’s market share was 29% during the third quarter of 2025, according to data by Synergy Research Group. Microsoft’s (MSFT) Azure held 20%, and Google (GOOG)(GOOGL) Cloud claimed 13%.