Amazon.com (AMZN) may capture a larger share of advertising budgets as it connects brand-awareness and purchase-focused ads, expands beyond its own platforms and adds more AI tools, Wedbush Securities said Thursday in a report.

Wedbush expects Amazon's advertising revenue to reach $84 billion in 2026 and $113 billion in 2028, with sponsored listings making up most of that business, while new AI-driven tools may help it win more spending by linking ads across Amazon, Prime Video and off-Amazon platforms.

Growing use of shopping agents and AI chatbots should create more advertising opportunities for Amazon rather than simply reduce demand for traditional product ads, the report said.

Easier AI-powered ad buying may also bring more small and midsize businesses onto Amazon's advertising platform, though advertiser adoption, measurement, and consumer trust remain possible challenges, the report said.

Wedbush maintained its outperform rating on Amazon stock and its $310 price target,

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