12:39 PM EDT, 04/23/2026 (MT Newswires) -- Amazon.com's (AMZN) Amazon Web Services growth is expected to continue to be "nonlinear,"supported by incremental investments and deals with both OpenAI and Anthropic that are expected to add nearly $200 billion in backlog and accelerate long-term capacity expansion, UBS Securities said in a note Thursday.

The brokerage said it differs meaningfully from the Street on AWS revenue for 2026, at 38% compared to the Street consensus of 26%, which then compounds into 2027 as additional capacity comes online and backlog converts into revenue.

UBS added that its 2027 operating income estimate is hence nearly 39% above consensus. The brokerage believes that the Street will eventually converge toward its more bullish trajectory as AWS scale and demand visibility improve.

Although Amazon shares have rebounded significantly year-to-date, UBS thinks there is still room to outperform. The investment firm believes a premium asset like Amazon should not trade at a discount to the market multiple given its long-term AWS and AI-driven growth profile.

UBS has a buy rating on Amazon and raised the price target to $304 from $301.

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