Amazon.com Inc (NASDAQ:AMZN) secured fresh bullish backing from Wall Street on Wednesday as analysts lauded the tech giant's "agent-driven" artificial intelligence strategy and custom chip breakthroughs unveiled at Amazon Web Services re:Invent.
- Bank of America Securities analyst Justin Post reiterated a Buy rating on Amazon and raised the price forecast from $272 to $303.
- JP Morgan analyst Doug Anmuth reiterated an Overweight rating on Amazon and set a price forecast of $305.
- Wedbush analyst Scott Devitt reiterated Amazon with an Outperform and set a price forecast of $340.
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Bank of America Securities
Post noted that Amazon's re:Invent keynote revealed significant AI substance as AWS builds toward an agent-driven future.
CEO Matt Garman's prediction that enterprises will soon deploy "billions" of autonomous agents, supported by the release of three new frontier agents for security, DevOps, and continuity, per the analyst.
He emphasized Amazon's deepened collaboration with Nvidia, particularly the upcoming Trainium4 chips that will feature Nvidia Corp (NASDAQ:NVDA) interoperability and NVLink Fusion connectivity to boost system speed.
Post also highlighted the new "AI Factories" concept, which allows customers to deploy dedicated AWS infrastructure—including Nvidia and Trainium chips—directly into their own data centers for secure, low-latency access.
Despite the absence of a major OpenAI announcement, the analyst remained constructive on AWS, arguing that these expanding hardware and agent capabilities position the company to capture growing demand.
The analyst expects AWS revenue growth to accelerate toward 25% in 2026 as Amazon brings more capacity online.
JP Morgan
Anmuth expressed increased confidence in Amazon's generative AI positioning following the AWS re:Invent conference.
The analyst argued that Amazon is successfully tightening the competitive gap through significant performance gains in its custom Trainium chips, the strength of its Bedrock platform, and deep partnerships with Anthropic and OpenAI.
Consequently, he projected AWS revenue will grow 23% in both the fourth quarter and 2026, a figure he suggests could prove conservative.
Anmuth highlighted the general availability of Trainium 3, which delivers 4.4 times the compute performance of its predecessor, as a key driver for cost-effective AI deployment.
The analyst noted that improved PyTorch integration is boosting customer adoption of these custom chips.
Furthermore, he highlighted the development of Trainium 4, which will support Nvidia's NVLink Fusion technology, as evidence of Amazon's forward-looking infrastructure strategy.
Anmuth also cited the launch of AWS AI Factories and the new Nova 2 foundation models as critical expansions of the ecosystem, reinforcing his belief that secular growth and new AI workloads will accelerate AWS momentum.
Wedbush
Devitt argued that Amazon's "clear focus" on broadening its AI capabilities during re:Invent reinforced his conviction in the company's growth trajectory.
Impressed by the pace of innovation, the analyst expected 2026 to be a catalyst year that drives shares toward his $340 price forecast.
He highlighted the launch of Trainium3 chips—boasting 4.4x better compute performance than previous generations—and the unveiling of the Nova 2 model family as key competitive differentiators.
Devitt also emphasized Amazon's advancements in "agentic AI," pointing to new frontier agents that work autonomously to handle software development, security, and DevOps tasks.
The analyst viewed the growing backlog and higher 2025 capex guidance as signals of robust demand, noting that AWS growth would have been even stronger if not for capacity constraints.
With AWS already surpassing a $130 billion run rate and doubling its capacity relative to 2022, he projected 22% year-over-year growth next quarter as demand accelerates across the AI stack.
AMZN Price Action: Amazon.com shares were down 0.84% at $232.45 at the time of publication on Wednesday, according to Benzinga Pro data.
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