Amazon (AMZN) Stock: Analyst Sees Path to $1 Trillion Revenue by 2028

TLDR

• Amazon (AMZN) opened at $238.51 on Wednesday, with a market cap of $2.57 trillion.
• Analyst Shay Boloor says Amazon could become the first company to hit $1 trillion in annual revenue by 2028.
• Amazon plans roughly $200 billion in capital spending in 2026, backed by over $100 billion in commitments from OpenAI.
• The company’s custom chip business, Graviton and Trainium, has topped a $20 billion annualized revenue run rate.
• Amazon faces a $2.25 million FTC settlement and a new Australian lawsuit over Prime Video ads.

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Amazon (AMZN) opened at $238.51 on Wednesday. The stock carries a market cap of $2.57 trillion and sits between its 12-month low of $196.00 and high of $278.56.

Amazon.com, Inc., AMZN

One analyst thinks the company is just getting started. Futurum Equities Chief Market Strategist Shay Boloor said Amazon is “on track to become the first company to cross $1 trillion in annual revenue by 2028.”

Boloor pointed to Amazon’s spread across commerce, cloud, logistics, ads, and AI. He called it “one of the most important infrastructure companies in the world.”

Amazon’s AI Spending Ramps Up

Amazon plans to spend about $200 billion on capital expenditures in 2026. Much of that is tied to major customer deals, including more than $100 billion in commitments from OpenAI.

The company’s custom chip lineup, Graviton and Trainium, has crossed a $20 billion annualized revenue run rate. Amazon says that business is growing at triple-digit rates.

Those chips are expected to lower costs and boost margins over time. That’s a big deal for a company running some of the largest data centers on the planet.

Amazon beat expectations in its first-quarter report back in April. Revenue came in at $181.52 billion, ahead of the $177.30 billion analysts had penciled in.

Earnings landed at $2.78 per share. That crushed the consensus estimate of $1.66 per share.

Institutional investors clearly like what they see. Cardinal Point Capital Management ULC boosted its Amazon stake by 13.6% in the first quarter, adding 4,450 shares for a total of 37,124 shares worth about $7.73 million.

Several other funds made similar moves. Brighton Jones LLC lifted its position by 10.9%, now holding over 4 million shares worth roughly $885 million.

Overall, institutional investors own 72.2% of Amazon stock. That’s a heavy concentration by any measure.

Insiders Have Been Selling

Not everyone at the top is buying, though. CEO Matthew Garman sold 15,467 shares in May at an average price of $263.40, worth just over $4 million.

SVP David Zapolsky also sold, offloading 9,270 shares at $268.53 each. Over the past 90 days, insiders have sold nearly $51.4 million worth of stock combined.

Amazon isn’t without legal headaches either. The company agreed to pay $2.25 million to settle an FTC case, and now faces a new lawsuit in Australia over alleged Prime Video ad practices.

On the brighter side, AWS just launched a $1 billion Forward Deployed Engineering unit. The goal is to embed AI engineers directly with customers to speed up enterprise adoption.

A recent Jefferies survey found 95% of IT executives plan to increase cloud spending in 2026. AWS is seen as one of the biggest beneficiaries of that trend.

Wall Street’s price targets reflect the optimism. Stifel Nicolaus set a $319 target, while Susquehanna raised its target to $325 with a “positive” rating.

Fifty-seven analysts currently rate Amazon a Buy, versus three Hold ratings. MarketBeat lists a consensus “Moderate Buy” rating with an average price target of $312.78.

Amazon’s 50-day moving average sits at $255.10, while its 200-day average is $234.31. The stock has a PE ratio of 28.53 and a beta of 1.44.