Amazon: Mizuho Starts Coverage with Outperform Rating, $300 PT Set

Amazon: Mizuho Starts Coverage with Outperform Rating, $300 PT Set

Mizuho analyst Lloyd Walmsley has initiated coverage on Amazon.com Inc. (AMZN) with an outperform rating and a price target of $300, one of the highest on Wall Street according to FactSet data Amazon was late to the AI party. Here’s how the stock can make a comeback.^[1]. Walmsley predicts a significant acceleration in Amazon's cloud-computing business, driven by increasing AI workloads shifting from training to inference.

Walmsley anticipates that AI inference workloads, which involve AI models reacting to real-time information, will help AWS double its AI revenue in 2026 to almost $17 billion from an estimated $8 billion in 2025 Amazon was late to the AI party. Here’s how the stock can make a comeback.^[1]. He believes that as more AI agents and applications come online, AWS could do $34 billion in inference revenue by 2028.

The analyst attributes Amazon's AI delay to a scarcity of server hardware and power, citing capacity constraints in the first half of 2025 as a growth pressure Amazon was late to the AI party. Here’s how the stock can make a comeback.^[1]. However, Walmsley expects a boost from Amazon's Project Rainier data centers, which are set to come online in the second half of 2025 and 2026. He also notes an over 30% increase in shipments of Amazon's custom Trainium chip in the second half of 2025 compared to the first Amazon was late to the AI party. Here’s how the stock can make a comeback.^[1].

Walmsley predicts that as Project Rainier facilities come online, Amazon's relationship with Anthropic, in which Amazon has a minority stake, will strengthen. Increased capacity will unlock more incremental inference revenues from Anthropic, which could contribute more than 1 percentage point in incremental AWS growth in the fourth quarter of 2025 Amazon was late to the AI party. Here’s how the stock can make a comeback.^[1].

In addition to a growing AWS business, retail margin improvement can be another important catalyst for the stock. Walmsley believes that Amazon's improving same-day and next-day delivery capacity should help the company unlock sizable opportunities Amazon was late to the AI party. Here’s how the stock can make a comeback.^[1].

HSBC analyst Paul Rossington agrees, stating that Amazon's push toward same-day grocery delivery could help the company gain market share and drive up e-commerce sales Amazon was late to the AI party. Here’s how the stock can make a comeback.^[1].