Analysts are shifting their view on Amazon's capital expenditures from 'reckless spending' to 'strategic harvesting,' projecting a massive re-rating of the company's free cash flow and a re-acceleration of AWS growth rates in 2026.
- The substantial AI infrastructure investments are expected to drive AWS growth rates toward 30% and potentially expand operating margins to 37–38% in 2026.
- This strategic transformation is projected to double Amazon’s free cash flow within 24 months, paving the way for a potential $3 trillion-plus market capitalization.