Amazon Surges on Nvidia Partnership and AI Infrastructure Demand

Amazon's stock price surged 3.6% in afternoon trading to reach $265.60, as investors digested the implications of a landmark partnership with Nvidia and Amazon Web Services (AWS) pledged to deploy an additional 2 million high-performance GPUs across its global data center footprint by 2028.

The move underscores AWS's growing demand for AI compute power, which has already outpaced its prior commitment of 1 million GPUs made just five months ago. This is a significant tailwind for the company's long-term growth thesis.

Analysts have been upgrading their estimates and price targets on Amazon in recent days. Andrew Boone raised his AWS outlook and set a $315 price target, citing surging AI demand from anchor customers like OpenAI and Anthropic as a structural driver of hyperscale cloud growth. Mark Mahaney at Evercore ISI also lifted his price target to $355 from $315.

The move is a testament to the growing importance of AI infrastructure investment, with Amazon joining over 100 other tech companies in warning of an imminent wave of AI-driven cyberattacks. The stock's gain was notable given the broader market's sluggish performance, with the S&P 500 slipping 0.3% and the Nasdaq essentially flat.