Quick Read
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AWS growth reaccelerating to 37% makes Amazon’s (AMZN) 21x P/E look cheap versus peers, with our price target implying 33% upside.
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Amazon and NVIDIA (NVDA) will deliver 2 million additional GPUs for agentic AI, accelerating the cloud infrastructure arms race.
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Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Amazon didn’t make the cut. Grab the names FREE today.
Amazon (NASDAQ:AMZN) delivered one of its cleanest quarters in years, with AWS accelerating for the fifth straight quarter and advertising growing at 26% pace. The market has yet to fully price in this acceleration. Our Amazon 24/7 Wall St. price target signals meaningful upside.
24/7 Wall St. Price Target Summary
Our 24/7 Wall St. price target for Amazon is $340.96 over the next 12 months, implying 33.1% upside from today’s $256.33. The recommendation is buy with high confidence. AWS growth reaccelerated to 37%, advertising compounds at a $19.8 billion quarterly clip, and the AI and chips businesses each cleared a $25 billion annualized run rate.
Why AWS Just Changed the Conversation
Amazon is up 12.49% over the past month and 12.76% year to date, though shares pulled back 2.09% in the last week. The stock sits below its 52-week high of $287.20, leaving room to run.
Q2 revenue hit $200.61 billion, up 19.62%, with operating income of $27.46 billion jumping 43.24%. AWS backlog swelled to $496 billion, and this week’s announcement that Amazon and NVIDIA (NASDAQ:NVDA) will deliver 2 million additional GPUs for agentic AI underscores the capacity race (all that silicon has to be powered, cooled, and networked by someone, which is the whole premise of our free AI infrastructure report).
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Amazon didn’t make the cut. Grab the names FREE today.
Bull Case: $390 and Beyond
The bull case hits $390.96, or 52.61% upside. AWS growth stays above 35%, Trainium and Graviton continue capturing custom-silicon share, and Q3 operating income lands near the top of the $22.5 billion to $26.5 billion guide.
Wall Street backs this: 16 analysts rate the stock Strong Buy and 43 rate it Buy, with a consensus target of $327. Advertising at 26% growth is a high-margin flywheel, and Amazon Business runs at a $60 billion annualized clip.
What Could Go Wrong
The bear case sits at $291.59, still 13.83% above today. Q2 capex reached $54.21 billion, up 68.44%, and TTM free cash flow turned negative at -$7.6 billion. Long-term debt has risen to fund the buildout.
