AMZN AWS Growth Trajectory: Analyst Sees 45% Exit Rate for 2026

Rosenblatt analyst Scott Devitt anticipates Amazon Web Services (AWS) will conclude 2026 with a 45% growth rate, surpassing consensus estimates of 38%. This outlook, shared in a research note on August 19, posits AWS on a trajectory to reach $335 billion by 2028, largely driven by increasing AI-related demand.

### Story Arc / How We Got Here

Previously, on August 15, investors evaluating broad market exposure considered iShares Core S&P Total U.S. Stock Market ETF (ITOT) and Schwab U.S. Broad Market ETF (SCHB) as offering nearly identical, low-cost options. Today's focus on hyperscale cloud providers highlights a shift towards segment-specific growth drivers within the broader market, particularly the impact of AI on cloud infrastructure companies. For more details on broad market ETFs, refer to our prior coverage at /explore/itot-vs-schb-broad-market-etfs-offer-near-identical-exposure.

### Tape / Session Read

While AWS's growth is forecast to accelerate, its recent performance shows it growing at 37% in Q2 2026, trailing Google Cloud's 82% and Microsoft Azure's 43% in the same period. However, AWS's larger revenue base of $42.2 billion in Q2 2026 means it adds more absolute dollars in revenue than its faster-growing competitors. Amazon's Q2 fiscal 2026 results, filed July 30, 2026, indicated AWS accelerating its growth, with its backlog reaching $496 billion.

### Why This Lane Matters

The projected acceleration of AWS's growth trajectory underscores the sustained demand for cloud services, particularly those underpinning artificial intelligence applications. For investors, this suggests continued opportunities within the technology sector, emphasizing the importance of scale and strategic positioning in the competitive cloud infrastructure market.

## $AMZN+WL Technical Analysis & Key Risk Watch

Amazon (NASDAQ: AMZN) remains a significant player in the cloud computing space. Its valuation at roughly 22x forward P/E aligns closely with Microsoft (NASDAQ: MSFT)'s 24x, suggesting the market is pricing in expectations for margin expansion from AWS and other segments. Hedge fund activity saw Coatue Management increasing its $AMZN+WL stake by 49% in Q2 to 11.83 million shares, and Arrowstreet Capital boosting its position by 24% to 40.35 million shares. These moves indicate confidence in Amazon's future prospects, particularly its cloud division.