Amazon's $272 Target Reiterated as OpenAI Models Launch on AWS

Friday, Aug 8, 2025 4:13 pm ET1min read

Amazon.com (AMZN) is a high-flying AI stock with a $272 target from BofA Securities. The affirmation follows OpenAI's announcement of new open weight models on AWS. Customers can use Amazon Sagemaker and Amazon Guardrails to leverage these models. The analysts noted that while these models don't represent OpenAI's leading-edge capabilities, they fit well with Amazon's cost savings strategy. AWS Director of Product Atul Deo stated that the unmatched size of AWS's customer base marks a transformative shift in access to OpenAI's advanced technology.

Amazon.com, Inc. (NASDAQ: AMZN) has received a $272 price target from BofA Securities analyst Justin Post, following OpenAI's announcement of new open weight models available on AWS. This strategic move aligns with Amazon's cost-saving strategy and expands its AI capabilities.

OpenAI's new models, gpt-oss-120b and gpt-oss-20b, offer advanced reasoning capabilities and are available through Amazon Bedrock and Amazon SageMaker AI. Customers can utilize Amazon Sagemaker for pre-training, evaluation, and deployment, as well as Amazon Guardrails for security features. AWS Director of Product Atul Deo emphasized that the unmatched size of AWS's customer base marks a transformative shift in access to OpenAI's advanced technology.

While these models do not represent OpenAI's leading-edge capabilities, they complement Amazon's cost-saving strategy. OpenAI's product lead Dmitry Pimenov noted that the partnership with AWS provides powerful, flexible tools for customers to build, innovate, and scale.

Amazon's integration of OpenAI models positions it as a leader in the AI cloud services market, challenging Microsoft's dominant position. This strategic partnership continues Amazon's commitment to delivering innovative generative AI technologies to meet customers' evolving needs.

References:
[1] https://ca.finance.yahoo.com/news/amazon-amzn-gets-272-target-201105089.html
[2] https://finance.yahoo.com/news/amazon-amzn-gets-272-target-201105089.html
[3] https://www.aboutamazon.com/news/aws/openai-models-amazon-bedrock-sagemaker
[4] https://theoutpost.ai/news-story/open-ai-partners-with-aws-releasing-open-weight-models-to-shake-up-ai-cloud-services-18710/

Amazon's $272 Target Reiterated as OpenAI Models Launch on AWS

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