Last week, KeyBanc Capital Markets said it expects Amazon to benefit from heavy AI infrastructure spending as AWS growth reaccelerates and demand for compute capacity remains strong.AWS Growth Supports Bullish ViewKeyBanc reiterated an Overweight rating on Amazon and raised its price forecast to $335 from $330. The firm said near-term margin pressure reflects Amazon’s push to strengthen AWS as a major supplier of scarce AI compute.KeyBanc raised its 2026 and 2027 total net sales estimates by less than 1% but lifted its AWS outlook, modeling 31% year-over-year growth in both years. The firm also increased its 2026 and 2027 operating income estimates by 4% and 8%, respectively.Capex Builds AI MoatKeyBanc introduced 2028 projections of about $1.08 trillion in revenue and roughly $178.6 billion in operating income. The firm also projected 2027 and 2028 capital expenditures of $331 billion and $356 billion, well above Street estimates of $235 billion and $241 billion.The firm said Amazon’s spending is tied to a growing AWS backlog, which it expects to reach about $485 billion, helped by a $100 billion, 10-year Anthropic agreement. KeyBanc said Amazon’s aggressive investment strategy could deepen its AI infrastructure moat, even if it limits near-term margin upside.Technical AnalysisAmazon is holding a constructive longer-term trend, trading about 7.6% above its 200-day SMA ($234.22) and about 5% above its 100-day SMA ($240.20), which keeps the bigger-picture bias pointed up. The near-term picture is a bit choppier, with the 20-day SMA still below the 50-day SMA (a bearish short-term crossover) while price is essentially sitting on the 50-day SMA area.Earnings & Analyst OutlookThe countdown is on: Amazon.Com Inc is set to report earnings on July 30, 2026 (confirmed).