Investors may be hearing some of the most bullish AI commentary yet, but Gene Munster says Wall Street is unmoved even as Amazon.com Inc. (NASDAQ:AMZN) insists demand for artificial intelligence (AI) infrastructure is "skyrocketing."
AI Optimism Meets Market Fatigue
On Thursday, Munster, managing partner at Deepwater Asset Management, said in a new blog post that the market is largely brushing off Amazon's increasingly confident outlook on AI.
Despite upbeat messaging from AWS at its re:Invent 2025 conference, Munster said investors appear to be "exhausted" and firmly in a "show me" mode.
For the past month, he noted, traders have been questioning whether the AI bull market is running out of steam. Amazon attempted to quiet those fears this week, but the reaction was muted.
“Amazon’s message was clear, they are accelerating its AI buildout and agents will have a profound impact on the future of work,” Munster noted, adding that “unfortunately, the market is not buying it.”
He said shares of Amazon, Alphabet Inc.’s (NASDAQ:GOOG) (NASDAQ:GOOGL), Nvidia Corp. (NASDAQ:NVDA), Microsoft Corp. (NASDAQ:MSFT) and Meta Platforms Inc. (NASDAQ:META) “down an average of 0.5% in the day following the bullish comments from Amazon, while the Nasdaq is flat.”
AWS Says AI Demand Keeps Surging
Munster noted that AWS CEO Matt Garman said that demand "keeps skyrocketing" and highlighted that AWS added 3.8 gigawatts of data center capacity in the past year.
"We're not slowing anything down. We're only speeding that up," Garman said.
Garman also reiterated AWS's push to support Nvidia GPUs while accelerating development of its in-house Trainium chips.
The company revealed that its latest Trainium 3 UltraServers offer more than four times the compute power of the previous generation, with Trainium 4 already in the pipeline.
AWS introduced "AI Factories," which allow enterprises to deploy dedicated AI infrastructure inside their own data centers, signaling Amazon's confidence that demand will stay elevated for years.
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From Chatbots To Agents — And Still, Wall Street Shrugs
Garman said AI's next leap will come from agents capable of taking action, predicting billions of agents inside every company. Amazon expanded Bedrock and launched AgentCore to help enterprises build these systems.
Even so, Munster said markets barely reacted. Shares of Amazon were down 1.41% on Thursday. In the past five days, the company's shares have slipped 0.02%, according to Benzinga Pro.
Meanwhile, negative headlines—such as a disputed report on Microsoft sales performance—triggered outsized sell-offs, Munster wrote.
What Could Shift Sentiment
Munster said investors may start paying attention again once companies report December earnings and issue 2026 capital spending guidance.
"The market is looking past optimistic comments that suggest we are still early in AI," he stated, adding that hard numbers may be the only thing capable of lifting sentiment.
In October, Amazon reported third-quarter net sales of $180.2 billion, a 13% increase from a year earlier. The figure topped the $177.8 billion consensus estimate. AWS generated $33.0 billion in sales, up 20% from the prior year.
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