Watson (shoulder) is out for Sunday's game in Denver, Greg Auman of The Athletic reports.
Watson filled in for Chris Godwin (concussion) in last week's 31-17 win over the Panthers, catching two of three targets for 48 yards while playing 89 percent of snaps on offense. Godwin is back in the lineup for Week 3, while Watson will take his turn on the inactive list. Coach Bruce Arians suggested No. 3 receiver Scotty Miller (hip/groin) will be available Sunday.