As AI becomes part of everyday online services, Wall Street is now more focused on which companies can turn AI spending into real returns. Two major firms — BMO Capital and JPMorgan — are both pointing to the same names for 2026: Amazon (AMZN) and Alphabet (GOOGL).
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Both banks believe that both of these companies are in the best position to turn years of AI investment into real growth.
2026 Is a Key Year for Amazon and AWS
Amazon is best known for online shopping, but its biggest profit driver is Amazon Web Services (AWS), which powers cloud and AI workloads for companies around the world.
BMO Capital expects more businesses to start using AI tools that actually perform tasks, not just generate answers. That trend benefits AWS, which provides the computing power behind many of these tools. The firm also noted that Amazon could make a large AI-related purchase next year, adding new capabilities instead of building everything in-house.
Meanwhile, JPMorgan sees 2026 as a key year for Amazon, with investors looking for stronger returns after a period of heavy AI and infrastructure spending. The bank pointed out that Amazon’s shares saw only modest gains in 2025, as rising capital spending weighed on sentiment.
Looking ahead, JPMorgan expects Amazon to raise spending again in 2026 as big tech continues to pour money into AI. With costs rising, the bank believes investors will be focused on whether AWS revenue growth can move back toward the mid-20% range next year.
Alphabet Brings AI Into Its Core Products
Alphabet owns Google Search, YouTube, and Google Cloud, products used by billions of people every day.
BMO Capital said that AI success in 2026 will depend on turning models into real value for users and businesses. The firm said Alphabet stands out because it can bring AI directly into widely used products like Search, advertising, and workplace software.
At the same time, JPMorgan also sees 2026 as an important year for Alphabet, pointing to the rollout of AI-powered Search and wider use of Google’s Gemini models. The bank is particularly upbeat on Google Cloud, noting that more companies are turning to Google’s AI tools as they expand their own AI use.
After a strong rally driven by AI excitement, JPMorgan said investors will now be watching for steady revenue and profit growth, rather than just new product launches. For Alphabet, the focus in 2026 will be on showing that AI can support growth across Search, Cloud, and advertising.
Which Internet Stock Is Best to Buy Now?
We use the TipRanks Stock Comparison tool to see how Wall Street analysts are rating Amazon and Alphabet, and which company they believe has the strongest upside.
