Wells Fargo Keeps 'Overweight' Rating on Amazon Amid AWS Pricing Hikes

Wells Fargo has reaffirmed its 'Overweight' rating for Amazon (AMZN) stock, predicting it will reach $338.00 by October 7, 2026. This prediction is based on AWS's recent announcement of a 15% increase in GPU reserve pricing, marking the fourth consecutive quarterly price hike across various GPU classes.

According to the report, prices for H100/H200 and B200/B300 GPUs have surged by 40-75% year-to-date. The A100s were included in the price increase for the first time this year in the fourth quarter, while Trainium2 reserve prices remain unchanged and Trainium3 is still not listed.

Wells Fargo believes that this sustained demand for AI compute and hyperscaler ability to pass through supply chain inflation will support its expectation of AWS revenue acceleration through early 2027. However, due to the contracted nature of current capacity, some delay between reported price changes and realized monetization is expected.