Amazon's Bull Case Gains Momentum on AI Infrastructure Investments

Amazon's stock price has been on a tear this year, rising 15.43% year-to-date and 17.55% in just the past month alone.

The company's cloud growth has reached its fastest pace in 18 quarters, with CEO Andy Jassy describing it as 'booming' after the July earnings report.

Amazon is investing heavily in AI infrastructure, pouring roughly $200 billion into it this year, and analysts are taking notice, lifting their targets to a consensus price of $327 per share.

To reach $350 per share by 2027, Amazon would need to continue converting its AI capex into cloud revenue, maintain advertising growth rates in the mid-20s, and see AWS margins do the heavy lifting.