Amazon Stock Eyes $326 Target as AWS Backlog Hits Record High

Amazon's stock is on the rise after its cloud division posted its strongest growth rate in 18 quarters. The company's AWS division has a $496 billion backlog of committed customer contracts, which analysts believe will drive future revenue.

A 12-month price projection puts Amazon shares at $326.19, with some analysts predicting even higher targets if AI momentum continues. The company is expected to continue heavy spending on data centers and AI infrastructure, but investors remain optimistic about the cloud business' potential.

The bullish case for Amazon stock relies heavily on the growth of its AWS division, which has become a major profit engine for the company. While there are risks involved, including the possibility of slowing cloud growth or cooling AI demand, analysts believe that AWS will continue to accelerate in the coming quarters.