Amazon Shares Poised for Surge as AI Fuels Online Sales

A new report from Evercore ISI suggests that Amazon's shares are likely to surge due to the growing popularity of artificial intelligence (AI) on its online shopping platform.

The investment firm, which has an outperform rating on Amazon, increased its price target on the stock to $355 from $315, indicating a potential 40% upside from Thursday's close.

This prediction is based on the finding that 57% of Alexa AI users purchased products they were not previously aware of, according to Evercore ISI's annual online retail survey. The survey also showed that Amazon was the most popular online platform among respondents, with a penetration rate of 92%, while Walmart trailed behind at 58%.

Alexa for Shopping could be an accelerant, as 36% of participants in the survey reported buying more due to the AI addition. Evercore ISI's call matches the consensus on Wall Street, where 64 out of 68 analysts rate Amazon a buy or strong buy.