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It depends on how it is used. In "I have an American cousin" American is an adjective modifying the noun cousin. But in "Americans enjoy sports" Americans is a plural noun (demonym) meaning people who are from America.

Note: In the sentence "I am an American", American is a noun. But if I say "I am American", American is what is called a predicate adjective. It is an adjective, but it is linked to the pronoun 'I' by the verb to be. You might say American flag (adjective), but you would never say 'American I' intending the meaning to be 'I am American'.

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