Bank of America revamps Amazon stock price target

The AI spending scare has hammered Amazon (AMZN) stock, pushing it into the punishment box, but Bank of America analysts person a antithetic perspective.

The slope reaffirmed its Buy standing connected the banal and reset its terms people to $275, implying astir $64.36 successful upside from Amazon’s existent $210.64 stock price (a 30.6% imaginable gain).

Essentially, BofA’s making the statement that Mr.Market, successful galore ways, is stuck successful the incorrect debate.

Over the past fewer weeks, investors person obsessed implicit Amazon’s colossal AI capex numbers and whether the returns tin ever drawback up.

Contrary to fashionable belief, BofA argues that, successful today's AI-powered economy, infrastructure capableness is intelligibly monetizable. So erstwhile compute request continues to outstrip supply, each incremental buildout is fundamentally a guardant gross indicator.

That’s possibly wherefore Billionaire Ken Griffin’s Citadel added astir $2.52 billion worthy of Amazon stock, taking its full presumption to implicit $3.2 billion, arsenic per its latest 13F filing.

Hence, if capableness additions proceed translating into sales, the statement numbers mightiness beryllium excessively low, and the marketplace whitethorn beryllium underestimating Amazon’s unthinkable net power.

• Citi (Buy): $320 terms target; +51.9% upside from $210.64.

• Wells Fargo (Overweight): $304 terms target; +44.3% upside.

• UBS: $301 terms target; +42.9% upside.

• Goldman Sachs (Buy): $280 terms target; +32.9% upside.

• JPMorgan (Overweight): $265 terms target; +25.8% upside.
  Sources: Tipranks, Investing.

In AI infrastructure, much powerfulness means much revenue.

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That’s precisely wherefore BofA is bullish connected Amazon, peculiarly its unreality services, which doubled their powerfulness capableness from 2022 to Q3 2025 (from astir 8.0 gigawatts to astir 15 GW).

Last twelvemonth alone, AWS added a mighty awesome 3.9 GW, including 1.2 GW successful Q4. That unthinkable momentum is expected to proceed done 2027, with Amazon’s absorption looking to treble capacity again by 2027.

BofA models AWS jumping to astir 31.4 GW by 2027, which points to additions of a tremendous +6.4 GW successful 2026 and +8.3 GW successful 2027, oregon astir 15 GW of incremental capacity implicit the adjacent mates of years.

In presumption of dollars, successful 2025, AWS generated $21.2 cardinal successful incremental income with 3.9 GW of additions. That equates to astir $5.4 cardinal of income per GW.

If everything holds steady, AWS income whitethorn scope $35 cardinal successful 2026 and $45 cardinal successful 2027, compared with Wall Street estimates of $32 billion and $38 billion, respectively. That points to full AWS income of $163.7 cardinal successful 2026 and $208.8 cardinal successful 2027, supra the market’s consensus.