Amazon Stock Rises Slightly as Wall Street Reassesses $200B AI Bet

AWS growth and easing market jitters boost investor sentiment around Amazon's aggressive AI investments.

Mar. 24, 2026 at 8:13am

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Amazon's stock price rose 2.3% on Monday, ending the session at $210.14, as Wall Street analysts reconsidered the potential impact of the company's $200 billion capital expenditure plan focused primarily on artificial intelligence infrastructure. The modest rally comes after a challenging start to the year for Amazon shares, with investors previously expressing concerns over the pace and scale of the AI investments. However, strong growth in Amazon Web Services (AWS) and a broader market rebound have helped lift investor sentiment around the tech giant's AI strategy.

Why it matters

Amazon's massive AI investment is a high-stakes bet that could significantly impact the company's long-term growth and profitability. The market's reassessment of this strategy reflects the ongoing debate around the potential returns and risks associated with such a large-scale AI infrastructure buildout.

The details

Amazon Web Services (AWS) continues to be a key driver of investor confidence, posting 24% year-over-year revenue growth in its latest quarter and $12.5 billion in operating income. Analysts argue that Amazon's shares remain undervalued, with Jefferies' Brent Thill describing them as 'mispriced, not broken' and maintaining a $300 price target. Amazon CEO Andy Jassy has defended the company's aggressive AI expansion, projecting that AI could help AWS reach $600 billion in annual revenue by 2036. The stock's modest gain also benefited from easing macroeconomic concerns and a broader market rally, particularly in the consumer discretionary sector.

  • Amazon stock rose 2.3% on Monday, March 24, 2026.
  • Amazon's latest quarterly results, which included the AWS growth figures, were reported prior to the stock's rise.

The players

Amazon (NASDAQ: AMZN)

An American multinational technology company that focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence.

Brent Thill

An analyst at Jefferies who maintains a $300 price target on Amazon stock and describes the shares as 'mispriced, not broken'.

Andy Jassy

The Chief Executive Officer of Amazon, who has defended the company's aggressive AI expansion plans.

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What they’re saying

“Analysts, including Jefferies' Brent Thill, argue that Amazon's shares remain undervalued, describing them as 'mispriced, not broken' while maintaining a $300 price target.”

— Brent Thill, Analyst, Jefferies

“Chief Executive Andy Jassy has dismissed concerns that Amazon is overextending itself with its AI and cloud investments. In recent remarks, he projected that AI could help AWS reach $600 billion in annual revenue by 2036.”

— Andy Jassy, Chief Executive Officer, Amazon

What’s next

Investors will continue to closely monitor Amazon's financial performance and the long-term impact of its $200 billion AI strategy, as the potential for both upside and volatility remains in the months ahead.

The takeaway

Amazon's modest stock price rise reflects a combination of AWS growth, analyst confidence, and supportive market conditions, but the company's massive AI investment remains a key point of debate among investors as they weigh the potential returns and risks associated with such a large-scale infrastructure buildout.