OpenAI's generative AI models are becoming available on Amazon's cloud a day after the AI company revamped its relationship with longtime partner Microsoft. "This is what our customers have been asking us for for a really long time," AWS CEO Matt Garman said at a launch event in San Francisco.

Alphabet's Q1'26 earnings results may ride on Search ad strength and surging Cloud demand for AI infrastructure, with Gemini features boosting engagement.

SAN FRANCISCO — Amazon moved quickly Tuesday to capitalize on OpenAI's new relationship status with Microsoft, launching a preview of its models on its Bedrock platform less than 24 hours after the ChatGPT maker was freed from its previously exclusive cloud arrangement.

Investors are watching Amazon (NASDAQ: AMZN | AMZN Price Prediction) ahead of Q1 2026 results due tomorrow after the close.

Amazon.com, Inc. has surged nearly 30% since late March, reaching all-time highs ahead of earnings. Options positioning is overwhelmingly bullish, with implied volatility near 98% and heavy call gamma between $260 and $275. AWS growth and CapEx spending are the two most critical metrics for investors this quarter.

Amazon (NASDAQ: AMZN | AMZN Price Prediction) is up over 13% this year, which is the best advance of any of the Mag 7.

Mizuho raised its price target on Amazon (NASDAQ:AMZN | AMZN Price Prediction) stock to $325 from $315 and kept an Outperform rating, sharpening the bull case that AWS is becoming the cloud backbone of the AI era.

AMZN's AWS growth, AI partnerships and $244B backlog set the stage for Q1, but heavy AI spending may pressure margins ahead of earnings.