Amazon Stock Target Raised to $265 Amid AWS and AI Momentum Build

Amazon's stock target has been raised to $265 by Bank of America, citing strong second-quarter retail data and Anthropic AI growth. The analyst expects strong AI demand and AWS capacity growth to drive the stock in the second half of the year, despite tariff uncertainty remaining a key risk. Amazon is an American technology company offering e-commerce, cloud computing, and other services, including digital streaming and artificial intelligence solutions.

Bank of America has raised its price target on Amazon (NASDAQ:AMZN) to $265 from $248, reflecting strong second-quarter retail data and anticipated growth in Amazon Web Services (AWS) [1]. The upgrade comes as the analyst expects robust AI demand and AWS capacity growth to drive the stock in the second half of the year, despite tariff uncertainty remaining a key risk.

Amazon, an American technology company, offers a wide range of services, including e-commerce, cloud computing, digital streaming, and artificial intelligence solutions. The company's solid financial performance, with a 10.08% revenue growth over the last twelve months, has bolstered investor confidence [1].

The analyst expects Amazon to beat Wall Street’s consensus for second-quarter revenue, forecasting $164 billion, and profit, projecting $17.8 billion. These estimates are supported by strong U.S. retail sales, favorable foreign exchange rates, and accelerating demand for AWS services [1].

AWS, a key stock driver, is expected to grow 16.5% year-over-year in the second quarter, slightly below the first-quarter’s 16.9% but in line with Street projections. The analyst projects robust AI demand and accelerating AWS infrastructure investments to drive growth reacceleration in the second half of the year [1].

However, tariff uncertainty remains a key risk. Despite this, the analyst expects Amazon’s valuation at 13.4x 2026 EV/EBITDA to offer room for multiple expansion. The company’s strong financial health and growth prospects in AI and cloud computing make it an attractive investment opportunity for investors and financial professionals.

References:
[1] https://www.investing.com/news/analyst-ratings/amazon-stock-price-target-raised-to-265-from-220-at-needham-93CH-4145398
[2] https://ih.advfn.com/market-news/article/13545/5-big-analyst-ai-calls-amazon-gets-a-pt-boost-apple-under-pressure-in-genai-race
[3] https://www.aol.com/amazons-ai-powered-aws-efficiency-211416383.html