Investment firm Pershing Square Holdings stated in its Q2 2026 investor letter that the accelerated growth in artificial intelligence (AI) demand has significantly boosted revenue growth for Amazon's (Amazon.com, Inc. AMZN) cloud service, Amazon Web Services (AWS), with projections rising from 20% in 2024 and 2025 to over 30% in 2026. The investment firm believes that investor concerns about AWS data center capital expenditures underestimate the resilience and immense growth potential of Amazon's business. Furthermore, Amazon's retail division saw a 15% increase in sales volume in Q1 2026, marking its fastest growth since 2021. Pershing Square anticipates that Amazon's long-term earnings compound annual growth rate could exceed 20%, driven by rising AI and e-commerce penetration, as well as substantial expansion in retail profit margins.