• Earlier in January 2026, Amazon Web Services (AWS) launched the AWS European Sovereign Cloud, an independently operated cloud fully located within the EU and run by EU residents, alongside ongoing plans for massive AI-related infrastructure and energy investments.

• At the same time, Amazon is exploring the acquisition of Oregon’s large Sunstone Solar project and expanding its physical retail footprint, underscoring how energy security, AI computing demand, and bricks-and-mortar retail experiments are increasingly intertwined in its long-term business model.

• With AWS’s new European Sovereign Cloud as a focal point, we’ll explore how these developments shape Amazon’s evolving investment narrative.

Trump has pledged to “unleash” American oil and gas and these 22 US stocks have developments that are poised to benefit.

To own Amazon today, you have to believe it can keep compounding earnings from three pillars: e-commerce, AWS and advertising. The new AWS European Sovereign Cloud fits neatly into that story, reinforcing AWS’s role with governments and regulated clients at the same time investors are watching for AI-driven acceleration and margin pressure from huge capex. The rumored Sunstone Solar acquisition and broader “we’ll fund our own power” stance speak directly to one of the key short-term catalysts and risks: whether Amazon can scale AI infrastructure without running into energy bottlenecks or political pushback on grid usage. Likewise, its megastore expansion near Chicago adds another experiment to the retail mix, but is unlikely to move the needle near term compared with AWS growth, tariff headlines and ongoing layoffs.

Yet behind the cloud investments, one emerging risk could matter more than it first appears.

Despite retreating, Amazon.com’s shares might still be trading 38% above their fair value. Discover the potential downside here.

Community members on Simply Wall St put Amazon’s fair value anywhere from US$208.15 to US$450, across 122 separate views. That spread sits against an investment case now increasingly tied to sovereign cloud adoption, AI-related capex and Amazon’s willingness to shoulder its own, very large, energy bill. For you, it underlines how differently people can see the same stock and why it is worth weighing multiple viewpoints before deciding what Amazon’s evolving story is really worth.

Explore 122 other fair value estimates on Amazon.com – why the stock might be worth 11% less than the current price!