Investors are underappreciating Amazon’s artificial intelligence potential, according to some analysts. “While consensus believes that AMZN lags behind its mega-cap peers in AI capabilities, AMZN highlighted that it has launched over two times the number of AI services than MSFT and GOOGL combined since 2023,” wrote BMO Capital Markets’ Brian Pitz. “We believe investors are underestimating AMZN’s positioning to win its fair share of AI workloads and believe its platform approach with Bedrock will be a winning strategy over the long term.” The analyst has an outperform rating on Amazon and a price target of $220, which signals 10% upside from Wednesday’s close. These tools and initiatives should support ongoing and accelerating revenue growth through 2024 and more than 20% growth in 2025, according to JPMorgan analyst Doug Anmuth. He called the stock a best idea, viewing AWS as offering a “best-in-class” array of large language models and foundation models tailored to developer needs. Anmuth has an overweight rating on the stock and a $240 price target, which implies upside of 20%. The commentary comes on the heels of the e-commerce giant’s Amazon Web Services summit in New York, where the company highlighted the ways customers are implementing AI workloads and showcased its rapidly growth AI platform know as Bedrock. Amazon shares have rallied about 30% year to date. AMZN YTD mountain Shares this year Citi’s Ronald Josey also reaffirmed his confidence in AWS estimates for the second quarter and onward following the event. The analyst also believes demand is gradually moving toward companies offering multiple specialized models. He retained a $245 price target on shares and called the stock a top Internet pick. The price target implies 23% upside from Wednesday’s close.
