TD Cowen Sticks With Buy on Amaznon (AMZN); $255 Target Intact

Amazon.com, Inc. (NASDAQ:AMZN) is one of the AI Stocks In The Spotlight For Investors. On October 7, TD Cowen analyst John Blackledge reiterated a Buy rating on the stock and retained the price target of $255.00.

Blackledge’s bullish outlook stems from the revenue growth anticipated in Amazon’s key business segments such as AWS, advertising, and eCommerce.

Besides revenue growth, he also believes in the continued expansion in these areas, enabling Amazon’s third-quarter results to surpass consensus estimates. A strong fourth-quarter guidance also seems likely, with accelerating AWS growth and strong performance in advertising.

Blackledge has also acknowledged how AWS has been lagging behind its cloud peers. However, he believes that the increasing demand for GenAI workloads will lead it on the path toward revenue growth acceleration in the latter half of 2025 and beyond.

Moreover, Amazon’s robust AI infrastructure investments will likely ease supply constraints and drive sustained growth. The contribution from partnerships such as that of Anthropic will likely enhance AWS’s year-over-year growth.

Amazon.com Inc. (AMZN) is an American technology company offering e-commerce, cloud computing, and other services, including digital streaming and artificial intelligence solutions.

While we acknowledge the potential of AMZN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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