Guggenheim Initiates Coverage of Amazon.com (AMZN) with "Buy" Rating and $300 Price Target

With significant hedge fund interest and upside potential, Amazon.com, Inc. (NASDAQ:AMZN) secures a spot on our list of the 15 best AI stocks to watch in December 2025.

On December 9, 2025, The Fly reported that Guggenheim initiated coverage of Amazon.com, Inc. (NASDAQ:AMZN) with a “Buy” rating and a $300 price target. The investment firm acknowledged that the retail sector continues to be perceived as “structurally sick,” despite strong holiday sales. The firm also noted that the sector has dealt with tariffs without major damage to profitability. Moreover, Guggenheim highlighted that investors are not paying attention to the fact that the majority of the retail stocks the firm covers are operating at high gross margins, close to their peak.

Similarly, Amazon.com, Inc. (NASDAQ:AMZN) saw Rosenblatt Securities reiterate a “Buy” rating with a $305 price target. The update followed the company’s AWS re:Invent event. The firm highlighted October bookings, which exceeded third-quarter 2025 results, reflecting strong enterprise adoption. Moreover, the company’s growing role in AI and cloud markets, seen through its seven-year $38 billion deal with OpenAI and a $50 billion, 1.3 GW AI infrastructure build-out, boosted the firm’s confidence. Furthermore, Rosenblatt Securities believes the company’s valuation may not be fully reflecting its cash flow potential and market leadership.

Earlier, on December 9, 2025, Amazon.com, Inc. (NASDAQ:AMZN) launched Graviton5-based EC2 M9g instances. These new instances are faster (25% faster than the previous-generation chips) and more energy-efficient.

Operating a global e-commerce platform and cloud computing business, Amazon.com, Inc. (NASDAQ:AMZN) delivers retail, digital services, and scalable infrastructure solutions to consumers and enterprises worldwide.

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.