TD Cowen Reaffirms Buy Rating on Amazon (AMZN)

Amazon.com Inc. (NASDAQ:AMZN) is one of the 15 best stocks to invest in according to billionaires.

On February 28, TD Cowen maintained a Buy rating with a $300 price target on Amazon.com Inc. (NASDAQ:AMZN). The firm views OpenAI’s announcement as “a positive signal for AWS.”

Following OpenAI’s disclosure of a strategic partnership and $50 billion investment from Amazon.com Inc. (NASDAQ:AMZN), the firm noted that OpenAI will expand its AWS compute commitment by $100B, which includes leveraging 2 gigawatts of AWS Trainium capacity.

On February 27, Chief AI Scientist for Amazon.com Inc. (NASDAQ:AMZN), Peter DeSantis, shared his views on the company’s ability to develop AI models more affordably using proprietary chips. This supports the company’s pursuit to catch up with competitors in building AI models and applications for consumers and businesses.

Amazon.com Inc. (NASDAQ:AMZN) expects that lower costs for products with AI will also motivate businesses to select Amazon for AI solutions, especially considering the high cost of semiconductor chip products and training for AI models.

Amazon.com Inc. (NASDAQ:AMZN) is a technology company engaged in e-commerce, cloud computing, streaming, AI solutions, and physical retail. It offers consumer retail, advertising, and subscription solutions through an extensive network of online and brick-and-mortar stores worldwide. The company also develops and sells electronic devices such as Kindle, Fire tablets, Fire TVs, Blink, and eero.

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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