Overview
- Amazon shares have climbed about 20% in April, finishing near a record close as Truist raised its target to $285 and TD Cowen reiterated $300 on expected Q1 AWS acceleration.
- WS now points to AWS reacceleration after 24% year-over-year growth in Q4 2025, which Amazon linked to rising enterprise AI workloads.
- Amazon reports AWS AI services at a $15 billion annualized run rate, and its custom chips reached a $20 billion external run rate after doubling in three months.
- The company plans to add more than one million Nvidia processors by 2027, and Barclays estimates full use of that capacity could support about $100 billion in annual AWS revenue.
- AMZN trades near 32 times forward earnings with a Strong Buy consensus, while large AI data center spending is likely to weigh on near-term free cash flow.