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AWS AI Strategy Wins Renewed Backing From Analysts After re:Invent

Investors cite new chips, model rollouts plus capacity gains as catalysts for a return to faster AWS growth.

Overview

  • Goldman SachsEric Sheridan reaffirmed a Buy rating with a $290 price target, projecting AWS revenue growth above 20% annually and GAAP EBIT margins in the low-to-mid 30% range.
  • Oppenheimer lifted its Amazon target to $305 and flagged plans to double AWS capacity through 2027 after a prior doubling since 2022, including at least 1 GW added in the fourth quarter.
  • At re:Invent, AWS detailed a three-layer AI push with Graviton5 and Trainium3 chips, AI Factories for dedicated deployments, expanded Bedrock controls, the Nova 2 model family, and new autonomous agents.
  • Bedrock adoption has surpassed 100,000 customers, roughly doubling year over year, according to the Goldman research cited.
  • Market commentary highlights that investor attention is centered on AWS following its latest 20% revenue growth, while a separate bullish thesis points to Anthropic’s gigawatt-scale Trainium clusters as a possible accelerant.