Amazon's Underappreciated AI Position Boosts Price Target to $335
Amazon's stock price is falling despite Rosenblatt initiating coverage with a Buy rating and $335 price target. The analyst, Scott Devitt, believes Amazon's standing in artificial intelligence (AI) is underappreciated by the market.
Devitt expects Amazon Web Services (AWS), the company's cloud unit, to grow 45% in 2026, outpacing the Street's estimate of 38%. By 2028, he forecasts AWS will clear $335 billion in annual revenue. This growth is attributed to a feedback loop where customers spend more on AI tools, using more of AWS's core cloud services.
The analyst points to Amazon's unique advantage of owning both computing infrastructure and a physical fulfillment network as a hard-to-replicate edge. While the stock price has declined today, its longer-term technical picture remains intact, with Amazon trading above its 200-day moving average.