Overview
- Cantor Fitzgerald lowered its Amazon target to $260 from $315 but kept an Overweight rating, framing 2026 as favorable as AI moves into a synergy phase.
- Jefferies lifted its target to $300 and BofA reiterated $303, with both projecting AWS growth to accelerate into the mid‑20% range in 2026 as workloads shift to inference and production.
- AWS growth improved from about 17% in the first half of 2025 to roughly 20% in Q3, and analysts expect further acceleration as new capacity comes online.
- Amazon plans to materially expand compute, including a goal to double capacity by the end of 2027, while rising AI capex is pressuring free cash flow and could lift depreciation.
- Shares lagged the S&P 500 in 2025 but started 2026 stronger, with analysts highlighting Bedrock, Rufus and Trainium as potential drivers of longer‑term AWS revenue and margin.