Amazon and Alphabet represent two of the most resilient tech holdings heading into 2026, according to multiple investment analyses published this week. Both companies combine cloud computing dominance with artificial intelligence infrastructure that analysts say positions them for long-term growth regardless of market conditions.
Amazon stock has gained only 6% year-to-date, underperforming broader markets and other mega-cap tech stocks. Despite this, Wall Street maintains a Strong Buy consensus rating with 44 Buy recommendations against one Hold. Analysts project 27.4% upside potential to an average price target of $296.12.
The company's third-quarter 2025 performance exceeded analyst expectations, with Amazon Web Services growing 20.2% year-over-year to $33.01 billion. AWS growth accelerated to its fastest pace since 2022, according to CEO Andy Jassy, who cited strong demand for AI and core infrastructure.
Amazon has invested $8 billion in AI startup Anthropic, which agreed to use 1 million custom Trainium2 chips from Amazon by the end of 2025. The company unveiled its $11 billion "Project Rainier" AI data center in October, designed to run on Anthropic's chatbot using 500,000 Trainium2 AI chips.
Beyond cloud computing, Amazon operates more than 1 million robots in its distribution centers coordinated by its DeepFleet AI model. These systems have driven operating efficiency, with segment-adjusted operating income soaring 28% last quarter on 11% revenue growth.
Alphabet represents the other half of this resilient pairing, with analysts citing its vertical integration and custom Tensor Processing Units as structural advantages. The company developed TPUs over more than a decade, creating cost advantages for training its Gemini large language model and running AI inference.
Other companies now deploy Alphabet's chips at scale for AI workloads within Google Cloud, according to recent reports. Alphabet has integrated Gemini throughout its product portfolio, including Google Search, Maps, and Gmail, while expanding AI assistant functionality to Android and Apple devices.
Amazon's ownership structure shows public companies and individual investors control 38.11% of shares. Founder Jeff Bezos remains the largest individual holder despite recent sales reducing his stake below 10%. Vanguard holds 6.72% through various funds, with the Vanguard Total Stock Market ETF owning 2.82% and Vanguard S&P 500 ETF holding 2.29%.
Looking toward 2030, analysts project Amazon's stock could reach $431 in bullish scenarios, $250 in baseline forecasts, and $77 in bearish projections. The baseline assumes revenue growth from $710 billion in 2025 to $1.153 trillion by 2030, with net income expanding from $48.9 billion to $110.7 billion.
Amazon Web Services generated $107.6 billion in 2024 sales, maintaining its position as the world's largest cloud provider despite competition from Microsoft Azure and Google Cloud. The company's advertising business reached $56.2 billion in 2024 revenue, nearly doubling its three-year total and ranking third in digital advertising behind only Alphabet and Meta.
Both companies face competitive pressures in cloud computing, with Microsoft Azure presenting particular challenges to AWS market share. However, analysts note that Amazon's e-commerce dominance - accounting for 40% of all U.S. online sales despite e-commerce representing just 15% of retail - provides additional stability.
The AI infrastructure investments by both companies position them for what analysts describe as an "AI-induced cloud boom" expected to accelerate in 2026. Amazon's custom AI chips and Alphabet's TPUs create proprietary advantages that competitors cannot easily replicate, according to investment research.
Amazon raised its 2025 capital expenditure forecast to $125 billion from $118 billion, with CFO Brian Olsavsky indicating that number will likely increase in 2026. The company continues expanding data center capacity, adding more than 3.8 gigawatts over the past 12 months to meet AI and infrastructure demand.
Investment analysts recommend holding both stocks through potential market volatility, citing their combination of cloud computing scale, AI infrastructure investments, and diversified revenue streams. The companies' positions in what analysts call the "Magnificent 7" group of mega-cap tech stocks further supports their resilience, according to market research.
