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Rosenblatt flags AWS acceleration as Amazon catches up on cloud growth
The firm expects AWS to exit 2026 with 45% growth, after climbing for five straight quarters from 17% in Q2 2025 to 37% in Q2 2026.
Amazon’s AWS is accelerating, and Rosenblatt is arguing that the company’s artificial intelligence advantages are being undervalued by the market, according to a research note cited by Yahoo Finance.
Rosenblatt initiated coverage on Amazon on August 19 and set a $335 price target, projecting AWS to exit 2026 at 45% growth versus 38% Street expectations. The firm also said AWS could be on a path to $335 billion by 2028.
Recent results cited by Yahoo Finance were used to support the acceleration case, including AWS growth rising for five consecutive quarters, from 17% in Q2 2025 to 37% in Q2 2026. Amazon’s Q2 fiscal 2026 results filed July 30 showed AWS at $42.23 billion, its fastest pace in 18 quarters, with a $496 billion backlog.
The article also compares AWS with larger peers by growth rate, noting that AWS grew 37% while Google Cloud grew 82% and Azure grew 43%. Still, it highlights that AWS revenue was $42.2 billion in the quarter, putting it on a $169 billion annualized run rate, while AI and Chips businesses each reached $25 billion annualized run rates with triple digit growth in Q2.