Barclays analysts told investors that the latest figures disclosed in Amazon's shareholder letter enhance the long-term bullish case for Amazon Web Services and increase confidence in the company’s ability to capture AI-driven demand.
The bank wrote that the new metrics "give us additional confidence around AWS upside from AI over coming years," and added that "the AI story has come a long way since mid-\'25." Barclays described Amazon as "one of the more highly debated stocks" in its coverage universe, particularly around its competitive position in artificial intelligence, but said the fresh data points support the bullish thesis.
Among the disclosures Barclays highlighted, AWS reported an AI services revenue run rate above $15 billion in Q1 2026. The shareholder letter noted that "three years into this AI wave, AWS's AI revenue run rate is over $15 billion in Q1 2026... and ascending rapidly." Barclays flagged that development as a key validation of AI-led growth for AWS.
Barclays also drew attention to Amazon's infrastructure plans. The bank pointed to the company's announcement that it intends to add more than 1 million Nvidia GPUs across 2026 and 2027. Barclays estimated that, if fully deployed, that GPU capacity could theoretically translate into roughly $100 billion in annual AWS revenue.
New information on Amazon's custom chip business strengthened the positive view as well. The company disclosed that its chips unit reached a $20 billion run rate, having doubled in just three months. Barclays observed that, if that business were sold externally, it "would be ~$50 billion," a hypothetical valuation cited in the bank's analysis.
Beyond cloud and silicon, Barclays underscored growth in Amazon's grocery operations. The firm noted the disclosure that Amazon's grocery segment surpassed $150 billion in U.S. gross sales in 2025, making it the country's second-largest grocer. Barclays incorporated that retail scale into its broader assessment of Amazon's diversified revenue base.
Implications
Barclays interprets the combined AI revenue run rate, planned GPU deployment and the rapid expansion of the chips business as reinforcing Amazon's multi-year upside in cloud and AI infrastructure. The bank's view implies potential continued outperformance versus other mega-cap technology names, driven by AWS's positioning in the AI market.