Overview
- AWS used re:Invent to roll out Graviton5 and Trainium3, the Nova 2 model family, Bedrock upgrades, AI Factories, and new autonomous agents and workflow tools.
- AWS has added about 3.8 GW of capacity so far with roughly 1 GW slated for Q4 and management says total capacity is on track to double by the end of 2027.
- Amazon spent about $120 billion on capex over the past four quarters and guides to roughly $125 billion for 2025 with increases expected in 2026, pressuring free cash flow.
- Oppenheimer raised its price target to $305 and kept Outperform, Goldman Sachs reiterated Buy with a $290 forecast, and Piper Sandler maintained Overweight at $233 citing AWS momentum and holiday strength.
- Goldman estimates AWS AI services revenue of about $10.7 billion in 2025 and $23.1 billion in 2026 as Bedrock tops 100,000 customers, even as Amazon shares lagged major indices year to date.