Amazon Soars on Rosenblatt's Bullish AI Call

Rosenblatt analyst Scott Devitt began coverage of Amazon.com Inc (NASDAQ:AMZN) with a Buy rating and $335 price target, which implies around 26% upside from its current price of approximately $262.50.

Devitt argues that the market is underappreciating Amazon's standing in artificial intelligence, particularly through its cloud unit AWS. He expects AWS to grow 45% by the end of 2026, outpacing the Street's estimate of 38%, and reach $335 billion in annual revenue by 2028.

This growth is attributed to a feedback loop where customers spending more on AI tools use more of AWS's core cloud services, leading to additional growth. Devitt highlights Amazon as one of the sturdier names he covers due to its unique mix of computing infrastructure and physical fulfillment network.