Wells Fargo Boosts Amazon Stock Price Target Amid Growing Cloud Services Demand

Amazon's (NASDAQ: AMZN) stock price has been fluctuating over the past month, dipping nearly 6% below $250. Despite this uncertainty, analysts at Wells Fargo believe the e-commerce giant has potential for growth.

According to a note sent out by Ken Gawrelski, portfolio manager at Wells Fargo, Amazon's stock price is poised for a sustained surge in value. The analyst maintained his buy rating on AMZN and increased its price target from $328 to $338, citing the company's expanding cloud services through Amazon Web Services (AWS).

Gawrelski attributes AWS' rapid growth to increasing backlogs and accelerating demand for cloud services in data centers, particularly for AI infrastructure. This, he believes, will multiply Amazon's stock valuation.