TD Cowen Bullish on Amazon AWS Growth Targets Stock at $350
TD Cowen has reaffirmed its Buy rating on Amazon.com stock, setting a $350 price target. The firm’s optimism is fueled by expectations of accelerating growth in Amazon’s cloud computing division, Amazon Web Services (AWS). TD Cowen forecasts third-quarter 2026 revenue of $202 billion, aligning with consensus estimates, driven by AWS revenue growth projected to reach 41% year-over-year, up from approximately 37% in the second quarter of 2026.
The firm also estimates operating income of $27.6 billion, about 6% above consensus. For AWS, TD Cowen’s revenue and operating income estimates are 3% and 9% above consensus, respectively. AI revenue is expected to near $10 billion, contributing roughly 60% of AWS’s year-over-year incremental revenue. Despite a solid 11% year-to-date gain, Amazon shares lag slightly behind the S&P 500’s 13% rise.
TD Cowen predicts total third-quarter 2026 revenue growth of 12% year-over-year, supported by AWS and advertising growth, though partially offset by slower eCommerce expansion. The deceleration is attributed to Prime Day shifting to the second quarter of 2026 from the third quarter of 2025. The firm anticipates operating income of $27.6 billion, 4% above Amazon’s guidance range, driven by AWS, advertising, and fulfillment efficiency improvements.
In related news, Amazon introduced AI-powered advertising tools at its unBoxed 2026 conference, prompting Cantor Fitzgerald to reiterate an Overweight rating with a $320 price target. Wells Fargo maintained an Overweight rating with a $338 target following AWS’s 15% GPU reserve pricing increase, marking the fourth consecutive quarterly hike. Goldman Sachs added Amazon to its Director’s Cut list, while Rosenblatt raised its price target to $360, suggesting concerns over agentic commerce impacting advertising economics may be overstated.