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.

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.”

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.

The post Amazon (AMZN) Stock: Analyst Sees Path to $1 Trillion Revenue by 2028 appeared first on CoinCentral.