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Analysts Reaffirm Amazon on AI-Led AWS Expansion Despite Elevated Capex

Bank of America keeps a $275 target, citing Anthropic usage gains plus AWS power expansion.

Overview

  • Bank of America’s Justin Post on March 4 maintained a Buy rating with a $275 price objective, pointing to Anthropic’s revenue ramp, increased Claude usage, and plans to boost AWS power capacity.
  • Wells Fargo on February 23 trimmed its target to $304 but kept an Overweight rating, noting AI compute demand is set to outstrip supply and positioning capacity as a key success factor.
  • Oppenheimer on February 6 cut its target to $260 while reiterating Outperform, expecting an AWS revenue ramp despite a higher capex outlook following quarterly results.
  • Pershing Square increased its Amazon stake in Q4 2025 to more than 9.61 million shares valued at over $2.22 billion, as hedge fund holders rose to 381 with a combined $88.7 billion position.
  • Late February featured roughly $13 billion in insider sales per Yahoo Finance, alongside reporting of a $21 billion Spain investment and forecasts calling for hyperscaler capacity to double to 98GW with $860 billion in annual capex by 2027.