Goldman Sachs Boosts Amazon Price Target to $375 Amid Strong Q2 Earnings

Goldman Sachs has raised its price target for Amazon (AMZN) to $375 from $335, maintaining a Buy rating on the company. The decision comes after Amazon posted stronger second-quarter results led by faster growth in its cloud business, Amazon Web Services (AWS), and increased demand for artificial intelligence (AI).

AWS revenue reached $42.2 billion, beating expectations and growing 36.7% year-over-year in Q2. This marked the fastest growth in 18 quarters. AWS operating margin also reached about 39%, helped by stronger revenue and improved operating performance.

Growth in AWS has led to increased spending on data centers, AI infrastructure, and custom silicon, with Amazon's capital expenditure plan for 2026 set at around $220 billion. The company's backlog for cloud services reached $496 billion, indicating strong future demand. Additionally, Amazon's AI revenue run rate rose to $25 billion from $15 billion in the prior quarter.