Amazon named top pick by Rosenblatt amid AWS and AI growth prospects

Rosenblatt Securities has initiated coverage on Amazon with a “buy” rating, designating the company as a “top pick.” Analysts suggest that Amazon’s established business model is proving resilient amidst current technological shifts, with artificial intelligence expected to serve as a long-term strategic driver rather than a costly end in itself.

Specifically, analysts point to Amazon Web Services (AWS) as a major growth engine. Following a 37 percent increase in the second quarter, Rosenblatt anticipates AWS could achieve 45 percent growth in 2026, potentially reaching 335 billion dollars in revenue by 2028. This growth is expected to be driven by customers increasing AI expenditures alongside traditional cloud usage.

In addition to cloud services, Amazon is expanding its physical infrastructure. In Louisiana, planned investments in data centers have been increased to 18 billion dollars, which includes a third campus in Shreveport intended to create significant direct and indirect employment.