AWS Momentum Supports Amazon.com’s (AMZN) Expanding AI and Cloud Strategy

Amazon Inc. (NASDAQ:AMZN) is among the best machine learning stocks to buy according to analysts. Following its Q4 2025 results, UBS lowered its price target on the stock to $301 from $311 on February 6. Amazon’s FY 2026 capital expenditure guidance of $200 billion surprised the market and UBS, which were expecting capex to be around $150 billion. According to UBS estimates, growth for Amazon’s cloud services unit, Amazon Web Services (AWS), will rise to 38% in 2026, doubling from 19% in 2025. Moreover, the firm expects Amazon to maintain mid-30% growth if elevated spending continues through 2027.

Earlier, on February 4, Bloomberg reported that AWS and Prosus NV had signed a multi-year cloud and artificial intelligence agreement to expand the latter’s technology footprint in Latin America, Europe, and India. Prosus will leverage AWS’s advanced cloud infrastructure and AI capabilities to develop new AI-first applications/products and enhance its service portfolio in…