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This Artificial Intelligence Stock Could Bounce Back in 2026 | The Motley Fool

This Artificial Intelligence Stock Could Bounce Back in 2026 | The Motley Fool

Amazon has delivered poor performance since 2025 began.

Some artificial intelligence (AI) stocks just haven’t had as good a run as others. While the overall AI investment sector has done well, others have been left behind. One that has performed poorly over the past year is Amazon (AMZN 0.39%). While some may hesitate to call Amazon an AI stock, it’s one of the most important companies in this sector thanks to Amazon Web Services (AWS).

I think Amazon can bounce back this year and deliver strong returns along the way.

Image source: Getty Images.

Amazon plays a huge role in AI

Since 2025, Amazon’s stock has declined by around 7%. However, its revenue and earnings are up significantly from that time.

AMZN Revenue (TTM) data by YCharts.

The poor showing of Amazon’s stock despite strong growth points to Amazon’s valuation declining. That’s exactly what has happened, as the market is unwilling to pay the premium that it used to pay to own Amazon’s stock.

AMZN PE Ratio (Forward) data…

https://www.fool.com/investing/2026/02/15/this-artificial-intelligence-stock-could-bounce-ba/

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