Anthropic’s increasing run rate for annual revenue could bode well for Amazon amid concerns about overinvestment on artificial intelligence, according to Bank of America. Bloomberg reported that the buzzy AI startup’s annual recurring revenue is nearing $20 billion. That’s nearly double the amount seen at the end of 2025, per a Bank of America analysis. Amazon shares have dropped nearly 6% in 2026 as Wall Street worried that Big Tech may shelling out too much for data center buildouts. But Bank of America analyst Justin Post said investors can take the Anthropic report as a positive sign that these investments should pay off. “We see Anthropic’s recent ARR acceleration as a positive proof point for all hyperscalers and could help reduce a recent sector overhang on capex investment uncertainty,” Post wrote to clients on Wednesday. AMZN YTD mountain Amazon, year-to-date Amazon shares jumped nearly 4% in Wednesday’s session following Bloomberg’s report. To be sure, Post said to expect further concerns about spending as revenues drive further investment. But he said to “remain constructive” on Amazon Web Services, as the cloud business should be able to monetize its additional capacity at a higher rate than Wall Street anticipates. Because of that, investors should be able to have more confidence in the return on investment in near-term capital expenditures. If a significant portion of Anthropic workloads run on AWS and it earns half of the startup’s model training costs, Post said Amazon could see a $1 billion increase in quarter-over-quarter revenues tied to Anthropic. Post reiterated his buy rating on the stock. His $275 price target implies upside of nearly 27% from Wednesday’s closing level.
