Gene Munster of Deepwater Asset Management believes Amazon has given investors a bigger-than-usual view of AWS's future, and that its AI infrastructure opportunity may only be starting. Management guided for AWS growth of at least 40% in both 2027 and 2028 and said the cloud business could eventually reach 1 trillion USD in annual revenue, while AWS grew 39% in the September quarter, roughly in line with expectations. Munster estimates AWS would need average annual growth of about 42% to reach 1 trillion USD in five years; AWS currently makes up about 21% of Amazon's revenue, which he thinks could rise to about half within five years. Amazon plans to sell its custom Trainium AI chips from late 2027; Munster does not expect chip sales to be a major revenue source but sees it as another sign of Amazon's push into AI infrastructure, and expects capital spending to rise faster than Wall Street estimates. AMZN fell over 1% in Friday's regular session but rose 0.2% after hours, Stocktwits retail sentiment was 'extremely bullish', and the stock is up 4% year-to-date and 8% over 12 months.
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AMZNcloud computingartificial intelligenceAI investment
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AMZN
▲ Likely positiveAmazon
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Consumer Discretionary |
| Industry | Broadline Retail |
| Market cap | $2.7T |
| Close on 10/30/2026 | 240.47 |
| Change that session | -1.36% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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