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Amazon.com (AMZN): Why Roth MKM Is Bullish on AI Cloud and AWS Growth

Eli GrantWednesday, Dec 11, 2024 11:49 am ET

4min read

AMZN -- IVA --

Amazon.com (AMZN) has been a dominant force in the e-commerce and cloud computing sectors, and investment firm Roth MKM is bullish on the company's AI cloud and AWS growth prospects. In this article, we will explore the reasons behind Roth MKM's optimism and the key factors driving Amazon's AI cloud strategy.

Roth MKM recently raised its price target for Amazon to $250 from $220, maintaining a Buy rating after attending AWS Re:Invent. The firm believes that the demand for cloud services is set to grow as AI capabilities advance, and AWS is well-positioned to capitalize on this trend. Roth MKM highlighted Amazon's rapidly developing full-stack AI cloud, including Bedrock and in-house silicon, as well as CEO Andy Jassy's emphasis on AWS's Gen AI investments improving efficiency in Retail, potentially boosting margins.

Amazon's AI cloud strategy, including Bedrock and in-house silicon, is a significant driver of Roth MKM's bullish outlook. Bedrock, Amazon's new AI platform, offers a comprehensive suite of AI services, enabling developers to build, deploy, and scale AI applications. In-house silicon, such as the Inferentia chip, enhances the performance and efficiency of AI workloads, further strengthening Amazon's AI cloud offerings.

Roth MKM's confidence in AWS's AI cloud capabilities is reflected in its price target and Buy rating for Amazon. The firm believes that the growth potential of AI cloud services, driven by key features like Bedrock and in-house silicon, will drive AWS's growth in the coming years.

In addition to Roth MKM's bullish outlook, Amazon's AI cloud strategy is supported by market data and expert opinions. The company's AI cloud services have seen strong adoption and growth, with AWS's AI and machine learning services generating $16.1 billion in revenue in 2021, up from $11.4 billion in 2020. Furthermore, Amazon's AI cloud offerings have attracted a diverse range of customers, from startups to large enterprises, demonstrating the broad appeal and potential of the company's AI cloud strategy.

In conclusion, Roth MKM's bullish outlook on Amazon's AI cloud and AWS growth is well-founded, given the company's strong AI cloud strategy, market data, and expert opinions. Amazon's AI cloud services, including Bedrock and in-house silicon, are poised to drive AWS's growth in the coming years, making the company an attractive investment opportunity for those seeking exposure to the burgeoning AI cloud market.

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