There is a growing argument that the market has been pricing Amazon.com Inc. NASDAQ: AMZN with fears that have been grounded in recent weeks. CapEx concerns, FTC noise, and Blue Origin's setback have all combined to leave the stock looking unusually unpopular.
Amazon.com Today
- 52 week interval
- $196.00
▼
$278.56
- The P/E ratio
- 28.50
- Target Value
- $312.78
But beneath the headlines, the required image of one of Amazon's biggest engines looks very strong. As we'll see below, a new survey of IT executives by Jeffery recently delivered exactly the kind of data point the bulls were looking for. According to a survey of 40 technology executives, cloud usage is expected to grow more than 10% in 2026, up from 9.6% in 2025.
Even more surprising, 95% of respondents said they expect their cloud budgets to increase over the next year.
For Amazon, whose AWS unit is the world's leading cloud provider, it's exactly that kind of back-to-back demand that recent share price weakness hasn't priced in.
A Survey That Changes the Conversation
Amazon shares are currently trading around $240, having recovered modestly from last week's highs but still well below the highs set last month. The selling pressure was fueled by the usual mix of CapEx concerns and a broader cooling of sentiment about AI infrastructure plays. That background is exactly what makes the Jefferies survey so timely.
Amazon.com, Inc. price chart. (AMZN) for Tuesday, June 30, 2026
The survey showed “spending intentions” for AWS in particular, with 56% of CIOs expecting to spend more money on the platform by 2026. While AWS ranks slightly behind Microsoft Corp. NASDAQ: MSFT on average, the data still strongly supports the platform's position at a time when the market has been questioning whether Amazon's large CapEx spending will translate into meaningful revenue.
Why This Happens When the Market Goes Wrong
The reason this is so important is that it directly challenges the narrative driving the recent selloff. Many of Amazon's inefficiencies boil down to one concern—that the company is spending too much money on AI infrastructure too quickly.
However, the Jefferies survey points to the kind of demand picture that supports the CapEx story. If 95% of CIOs plan to increase cloud usage in the next year, and AWS is clearly benefiting from that trend, then spending money Amazon has been making on data centers and AI infrastructure is not predictable. It is designed to meet the need for clients themselves to clearly tell analysts what they plan to deliver.
In other words, the bulls who have been arguing that CapEx concerns are overblown have just found an important data point to back up their case. The market may not have caught on yet, but it usually doesn't take long for survey data to start showing up in analyst notes and revised earnings estimates.
The Big Picture That Matters
What makes the survey particularly encouraging is the role of AI within it. About 68% of CIOs now have a dedicated AI budget, and about 11% of the total IT budget is now allocated to AI workloads. More importantly, 73% of respondents said their actual annual AI budget to date is tracking more than their initial budget, with some companies already burning through their annual AI allocation.
For AWS, which sits at the heart of the AI infrastructure stack and counts Anthropic as one of its most important customers, that's exactly the kind of power that should be harnessed for meaningful revenue growth in the coming quarters.
Combine that with some deep business partnerships for AI, as well as continued momentum in Amazon's broader business, and the bull case at $240 looks more attractive than the recent price would suggest.
Where That Leaves Chance
To be sure, none of this quickly solves the near-term challenges facing Amazon. The FTC situation is still in play, the broader AI CapEx narrative will take time to change, and there may be more volatility before sentiment fully changes. The patience toll that comes with owning Amazon right now is real.
But for those willing to look beyond the noise, the Jefferies survey quietly changes the underlying argument. The market has been concerned about whether the demand for AWS justifies the expense. Customers themselves are now telling analysts that it does.
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