Amazon shares can continue to outperform mega cap tech: Barclays

Barclays says Amazon (AMZN.OQ) can continue to outperform other mega-cap tech names after disclosures in Amazon’s shareholder letter that strengthen the AWS AI growth story. Key takeaways: AWS AI services reached a >$15 billion annualized revenue run rate in Q1 2026, AWS plans to add more than 1 million Nvidia GPUs across 2026–27 (which Barclays says could imply ~ $100 billion in annual AWS revenue if fully deployed), and Amazon’s custom-chips unit hit a $20 billion run rate that doubled in three months (Barclays notes it could be ~$50 billion if sold externally). Barclays views these metrics as supporting the bull thesis on Amazon and increasing conviction in AWS upside from AI, which should be positive for AMZN shares relative to peers.