Amazon (AMZN) shares slipped 1.14% in trading on Tuesday as the company continues to lag in a market focused on artificial intelligence. While the Nasdaq 100 has gained nearly 12% in 2025, Amazon shares are up almost 4%, placing the stock in the lower half of the index.
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Part of the concern comes from leadership shifts in artificial intelligence. Arm Holdings (ARM) hired Rami Sinno, who was Amazon’s director of AI chips and led the development of its Trainium and Inferentia processors at Annapurna Labs. The move represents a potential setback as Amazon works to expand its role in advanced computing.
Market Performance Trails Peers
Part of the ongoing concerns stems from the slowed growth in Amazon Web Services (AWS) compared to its rivals. In the second quarter of 2025, AWS reported 17% revenue growth. Microsoft Azure (MSFT) grew by 39% while Google Cloud (GOOG) gained 32%. According to analysts, Amazon holds about 30% of the global cloud share, while Microsoft has reached close to 20%. Projections now suggest Azure could pass AWS by 2026 if current trends hold.
Moreover, Amazon has set a plan to spend about $100 billion in 2025 with a focus on cloud and AI capacity. However, investors have yet to see clear signs of payoff from these investments. Amazon has introduced projects such as DeepFleet for robotics optimization and Bedrock AgentCore for secure AI use. Still, these have not gained the same level of attention as products from Microsoft or Meta (META).
Yet Wall Street remains positive on the company. More than 90% of analysts maintain buy ratings, citing Amazon’s strong scale and long-term prospects. For many, the stock’s weaker performance in 2025 is seen as a pause rather than a lasting change in its outlook.
Is AMZN Stock a Buy?
As stated above, Amazon boasts a strong bullish sentiment among Wall Street analysts, with 45 out of 46 rating it a Buy. The average AMZN stock price target stands at $264.38, implying a 15.95% upside from the current price.
