Amazon's AI Advantage Ignored by Market: Rosenblatt

Rosenblatt analyst Scott Devitt has initiated coverage of Amazon.com Inc (NASDAQ:AMZN) with a Buy rating and $335 price target, implying about 26% upside from its current price.

The analysis suggests that Amazon's standing in artificial intelligence is underappreciated by the market. Devitt points out that AWS is at the center of this thesis, with expectations for it to close out 2026 growing 45%, outpacing the Street's 38% estimate, and reaching $335 billion in annual revenue by 2028.

AWS has already shown strong growth, accelerating its year-over-year pace in five consecutive quarters. Devitt notes that this is due to a feedback loop where customers using more AI tools also tend to use AWS's core cloud services, which further accelerates growth.