Amazon (AMZN) Stock: AI Infrastructure & Bullish Options Trade for 2026

Amazon's AI Infrastructure Play: A Bullish Outlook for 2026 and Beyond

Published on Feb. 24, 2026

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Amazon's core fundamentals remain strong, particularly its position in the burgeoning artificial intelligence (AI) infrastructure market. The company's Amazon Web Services (AWS) division is at the forefront of the 'AI Infrastructure Inversion' trend, providing the cloud computing power and services needed to run AI applications. AWS is also developing custom silicon like Trainium specifically designed for AI workloads. This vertically integrated approach positions Amazon to capture a significant share of the growing AI infrastructure market.

Why it matters

Amazon's strong financial performance, with superior growth metrics and profit margins compared to industry peers, makes it an attractive investment opportunity. The company's focus on AI infrastructure through AWS, as well as its advertising business, represent high-margin growth vectors that could drive continued earnings growth.

The details

Amazon continues to demonstrate strong financial metrics, trading at a forward P/E ratio of 25x compared to the industry average of 24x. Analysts expect the company to achieve approximately 25% EPS growth, significantly higher than the industry's projected 7%. Revenue growth is also expected to outpace the industry, with Amazon projected to grow at 12% compared to the industry's 6%. Net margins currently stand at 10.8%, exceeding the industry average of 7.0%. AWS remains the primary driver of Amazon's profitability, generating the majority of its operating income, and is experiencing re-accelerated growth fueled by AI workloads. Amazon's advertising business, now approaching a $60 billion annual run-rate, represents a second high-margin growth vector.

  • Amazon's stock price has recently experienced a technical reset, presenting a potential entry point for long-term investors.

The players

Amazon Web Services (AWS)

The world's most comprehensive and broadly adopted cloud platform, offering over 240 fully featured services.

Trainium

Custom silicon developed by Amazon specifically designed for AI workloads.

Amazon Bedrock

A platform offered by Amazon to monetize the demand for AI infrastructure at scale.

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What’s next

For investors seeking a bullish outlook with income generation and potential acquisition at a discount, selling the March 20, 2026 $200 Put option at a $7.03 credit is a potential strategy. This allows for a maximum reward of $703 per contract if Amazon remains above $200 at expiration. The maximum risk is assignment below $200, effectively acquiring Amazon stock at $192.97. The breakeven point for this strategy is $192.97.

The takeaway

Amazon's strong position in the AI infrastructure market, combined with its robust financial performance and growth metrics, make it an attractive investment opportunity for long-term investors. The company's vertically integrated approach and focus on high-margin business segments like AWS and advertising suggest it is well-positioned to continue outperforming the industry.