Key Moments
- Barclays said recent shareholder letter disclosures reinforce a long-term bullish view on Amazon Web Services’ artificial intelligence business.
- AWS’s AI services reached an annualized revenue run rate of $15 billion in Q1 2026, with Amazon describing the trajectory as “ascending rapidly.”
- Amazon reported its U.S. grocery business generated more than $150 billion in gross sales in 2025, positioning it as the country’s second-largest grocer.
Barclays Reaffirms Bullish Stance on Amazon
Investing.com — Barclays stated that Amazon shares can continue to outperform other mega-cap technology stocks, pointing to newly released information in the company’s shareholder letter that reinforces a constructive long-term outlook for Amazon Web Services (AWS).
In its commentary, Barclays said that the latest AWS 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.” The bank emphasized that Amazon is still “one of the more highly debated stocks” under its coverage, particularly regarding its positioning in artificial intelligence, but argued that the new data points “support the bull thesis.”
AWS AI Revenue and Infrastructure Expansion
One of the key updates highlighted by Barclays is that AWS has achieved a $15 billion annualized revenue run rate for AI services. The firm pointed to Amazon’s own description that “three years into this AI wave, AWS’s AI revenue run rate is over $15 billion in Q1 2026… and ascending rapidly.”
Barclays also underscored AWS’s infrastructure plans, noting the company’s intention to deploy more than 1 million Nvidia GPUs across 2026 and 2027. According to Barclays, this planned expansion could theoretically support approximately $100 billion in annual AWS revenue once the capacity is fully utilized.
| Metric | Detail |
|---|---|
| AWS AI revenue run rate | Over $15 billion in Q1 2026 |
| Planned Nvidia GPUs (2026-2027) | More than 1 million units |
| Potential AWS revenue supported by GPUs | Roughly $100 billion annually (theoretical, once fully deployed) |
Custom Chip Momentum and Valuation Implications
Further details from Amazon’s shareholder letter about its custom chip business also contributed to Barclays’ positive tone. Amazon reported that its chips unit has reached a $20 billion annualized revenue run rate, having doubled within just three months. Barclays noted that if this operation were sold externally, it “would be ~$50 billion.”
| Business Segment | Run Rate / Valuation |
|---|---|
| Custom chip unit revenue run rate | $20 billion |
| Implied external valuation (Barclays) | ~$50 billion |
Grocery Operations Reach Major Scale
Beyond cloud and AI, Barclays also pointed to Amazon’s growing presence in grocery. The bank said Amazon disclosed that its grocery segment delivered more than $150 billion in U.S. gross sales in 2025, which makes it the second-largest grocer in the country.
| Segment | Metric | Figure |
|---|---|---|
| U.S. grocery business | Gross sales in 2025 | Over $150 billion |
| U.S. grocery ranking | By gross sales | Second-largest grocer |
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