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Analysts See More Upside for Amazon as AI Spending Fuels AWS Reacceleration

Fresh coverage argues the stock’s premium valuation looks reasonable given a rebound in cloud growth.

Overview

  • New investor analyses this week frame Amazon as a Strong Buy, citing Q3 beats, improving operating leverage, and faster AWS growth.
  • Commentators point to escalating AI infrastructure outlays, including a reported $38 billion OpenAI deal, as a driver of future demand across AWS.
  • One piece sets a $300 price target despite a roughly 35x forward P/E, while another DCF view outlines a path to a $3 trillion valuation.
  • Forbes highlights steady earnings progress, margin expansion, and strong cash generation as reasons current multiples can be defended.
  • Authors also flag risks such as market concentration in the Magnificent 7 and potential pullbacks, and several disclose long positions in AMZN.