Oppenheimer Boosts Amazon (AMZN) Price Target on Strong AWS Growth Outlook

Amazon.com, Inc. (NASDAQ:AMZN) is one of the AI Stocks in Focus This Week. On December 1, Oppenheimer raised its price target on the stock to $305.00 from $290.00 while maintaining an “Outperform” rating. The firm sees significant upside for AMZN through 2027 driven by structural AWS growth.

AWS is planning to double its capacity through 2027 after having it doubled since 2022, with at least 1 GW to be added in Q4. Their analysis suggests an estimated $3 billion in historical revenue per incremental GW.

"Applying this to the forward GW forecast with pricing discounts suggests 14%/22% upside to Street 2026/2027 AWS revenue, including 3% upside in 4Q.”

Oppenheimer further acknowledged how AWS re:Invent could bring in additional announcements, even though they have been less impactful in recent years.

It also discussed Adobe forecasts for holiday sales.

“On retail, Adobe forecasting holiday sales +5% y/y vs. 2024's +9%, implying investor expectations are already muted. Target assumes 10× 2027 AWS revenue / 5× E-commerce gross profit, with AWS upside suggesting mid-$300s."

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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Disclosure: None.