BTCC / BTCC Square / Global Cryptocurrency /
Amazon Web Services Regains Momentum Amid AI Boom, Stock Seen as Undervalued

Amazon Web Services Regains Momentum Amid AI Boom, Stock Seen as Undervalued

Published:
2026-01-21 14:53:02
9
3
BTCCSquare news:

Amazon's cloud division is reclaiming its leadership position through aggressive AI infrastructure investments. The company recently reported its fastest AWS growth in years, followed by a landmark $38 billion cloud services deal with OpenAI. This partnership may extend to Amazon's proprietary Trainium chips, positioning the company as a viable alternative to Nvidia in the AI hardware race.

Despite these developments, Amazon shares remain discounted relative to peers. The stock trades at 24x forward earnings—a significant discount to its five-year average of 36x and below multiples of Apple, Microsoft, and Alphabet. This valuation gap persists after seven years of underperformance, including a mere 5% gain in 2025 versus the Nasdaq 100's 20% rally.

Market observers draw parallels to Alphabet's resurgence, suggesting Amazon could be poised for similar multiple expansion. The AI-driven cloud acceleration comes as enterprises globally commit unprecedented capital to data infrastructure, with AWS positioned as a primary beneficiary.

|Square

Get the BTCC app to start your crypto journey

Get started today Scan to join our 100M+ users

All articles reposted on this platform are sourced from public networks and are intended solely for the purpose of disseminating industry information. They do not represent any official stance of BTCC. All intellectual property rights belong to their original authors. If you believe any content infringes upon your rights or is suspected of copyright violation, please contact us at [email protected]. We will address the matter promptly and in accordance with applicable laws.BTCC makes no explicit or implied warranties regarding the accuracy, timeliness, or completeness of the republished information and assumes no direct or indirect liability for any consequences arising from reliance on such content. All materials are provided for industry research reference only and shall not be construed as investment, legal, or business advice. BTCC bears no legal responsibility for any actions taken based on the content provided herein.