Amazon's share price has stalled around $252, while AWS recorded 37% revenue growth in the second quarter of fiscal 2026, its strongest growth in 18 quarters. The company's internally developed Trainium and Graviton chips are also making a growing contribution to revenue.
Amazon's closing share price on 12 September was around $251.89, representing a 9.13% gain year to date and remaining below the 52-week high of $287.20. AWS generated second-quarter revenue of $42.0 billion, up 37% year on year, while its order backlog swelled to $496.0 billion. Revenue from the advertising business and non-retail segments reached $124.0 billion for the quarter, up 24% year on year.
The company's internally developed Trainium and Graviton chips generated more than $25.0 billion in annualized revenue, and the operating margin for the latest 12 months improved to 12.7%. Second-quarter EPS rose 242% year on year to $5.75, although it was also affected by non-operating gains related to investments. The guidance calls for approximately $200 billion in AI capital expenditures, pushing free cash flow down to negative $7.6 billion.
Analysts suggest there is scope for the share price to reach $300. The Wall Street consensus price target is $328.17, while some internal models forecast $353.36. Reaching $300 is considered contingent on AWS maintaining its growth and operating profit reaching the third-quarter guidance range. The current valuation is below its five-year average.