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Analysts See More Upside for Amazon on AWS Strength, AI Buildout, Cheaper Multiple

Fresh notes highlight AWS-led profitability with a roughly 35x forward P/E that looks more reasonable versus recent years.

Overview

  • Several analysts reiterate Strong Buy views, citing paths to a $300 share price or a $3 trillion valuation supported by AWS and AI momentum.
  • Q3 2025 beat expectations on revenue and EPS, with operating leverage and improving cash generation underscored across reports.
  • AWS remains the core profit engine, with some coverage citing about 60% of operating income year-to-date despite a smaller share of sales.
  • The investment case stresses stepped-up AI infrastructure spending, including a widely reported but unconfirmed $38 billion OpenAI-related commitment.
  • Risk notes focus on heavy concentration in the Magnificent 7, competitive pressures, and exposure to market pullbacks despite a strong balance sheet.