Amazon and Alphabet Tighten AI Race as 2026 Growth Prospects Diverge
Amazon shares closed at $232.14, marking a 4% gain over the past week, while Alphabet edged up just 2% to $314. The Magnificent-7 cohort remains tightly clustered as artificial intelligence investments reshape competitive dynamics. Amazon's spring slump limited its year-to-date performance to 5%, but AWS cloud momentum and OpenAI partnership talks position it for potential upside against analyst targets ranging from $244 to $340.
Truist Securities projects Amazon's growth will moderate to 10.5% in 2026 from 12.1% this year, though AI infrastructure spending could accelerate that trajectory. The e-commerce giant's rumored collaboration with Sam Altman's OpenAI mirrors Big Tech's scramble to secure foundational AI models - a trend that's drawing institutional capital away from traditional assets and toward tech-enabled growth plays.
