AWS Was Lagging Microsoft Azure and Google Cloud in Growth—Is Amazon Finally Catching Up?

According to Rosenblatt’s Scott Devitt, Amazon (NASDAQ:AMZN)’s leading position in artificial intelligence remains underappreciated. This bold claim was made in a recent research note on August 19, where Devitt initiated coverage on the stock with a $335 price target.

The firm anticipates AWS to exit 2026 at a 45% growth rate, compared with the Street’s 38% expectations. The firm further noted that AWS is seen on a path to $335 billion by 2028.

Does the Claim Hold Up?

The AWS acceleration claim is supported by recent numbers. AWS growth has climbed for five consecutive quarters, from 17% in Q2 2025 to 37% in Q2 2026. This strengthens the argument that AI demand is adding another growth cycle. Amazon’s Q2 fiscal 2026 results filed July 30, 2026 also showed AWS accelerating to $42.23 billion, its fastest pace in 18 quarters. AWS backlog, meanwhile, stood at $496 billion, growing triple digits year-over-year. The company’s AI and Chips businesses…