Amazon investors are placing renewed faith in the company’s AWS cloud division to reverse years of lagging performance versus tech peers. After trailing Microsoft and Alphabet in market gains, bulls see the cloud unit’s growth as the key catalyst for stock recovery.

AWS remains Amazon’s most profitable segment, generating over $20 billion in annual revenue with margins exceeding 30%. The unit’s expansion into AI services and enterprise solutions is viewed as critical for regaining investor confidence and narrowing the valuation gap with rivals.

Market analysts will watch AWS’s next quarterly growth figures and enterprise adoption rates. A sustained acceleration could signal Amazon’s return to tech leadership, while any slowdown may intensify pressure on the broader stock to outperform its peers.