Is Amazon.com (AMZN) One Of The Best Cloud Stocks To Buy As Azure Growth Hits 40%?

Amazon.com, Inc. (NASDAQ:AMZN), featuring a short float of 0.93% and upside potential of 17.90%, earns a spot on our list of the best cloud stocks to buy as Azure growth hits 40%.

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AWS grew 28% year-over-year to $37.6 billion in the first quarter of 2026, well ahead of the 25% analysts had forecasted. Consolidated net sales reached $181.5 billion, while second-quarter guidance came in at $194 to $199 billion in net sales, comfortably above the $188.9 billion consensus.

Management also reaffirmed its $200 billion AI capital investment target for the year, offering investors a degree of certainty amid an industrywide escalation in data center spending.

At the same time, Amazon.com, Inc. (NASDAQ:AMZN)’s latest partnership moves were hard to ignore.

Amazon.com, Inc. (NASDAQ:AMZN) brought OpenAI’s latest models and its Codex coding agent onto AWS, then committed up to $25 billion to Anthropic, with Anthropic pledging more than $100 billion in AWS expenditure over the next decade. AI services on the platform are already generating over $15 billion in annualized revenue.

Wall Street took notice of that backdrop: on April 30, 2026, TD Cowen raised its price target to $350 from $300 and lifted its revenue forecasts post-earnings; Goldman Sachs moved to $325 from $275, with the analyst flagging a sharply rising backlog as the more significant indicator of where AWS growth is headed; Raymond James went to $280 from $225, making the case that the AI partnership structure and expanding agentic capabilities position AWS as the platform enterprises will build on for years.

All three kept Buy-equivalent ratings on Amazon.com, Inc. (NASDAQ:AMZN).

Amazon.com, Inc. (NASDAQ:AMZN) operates across e-commerce, digital content, advertising, and cloud computing. Its online and offline stores offer both in-house and third-party products, while its Amazon Web Services (AWS) division runs one of the world’s largest data center networks.

While we acknowledge the potential of AMZN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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