BofA Maintains Buy on Amazon.com, Inc. (AMZN) Stock

Amazon.com, Inc. (NASDAQ:AMZN) is one of the Best Automation Stocks to Buy According to Analysts.

On March 4, Bank of America Securities analyst Justin Post maintained a "Buy" rating on Amazon.com, Inc. (NASDAQ:AMZN)'s stock, setting a price objective of $275.00. The analyst's rating is supported by the factors related to the ramp-up of AI-led growth at AWS as well as the improvement in capital returns.

Post noted Anthropic's massive revenue ramp and increased usage of Claude models. This suggests that there is healthy, broad-based enterprise demand for advanced AI services, which are dependent on the hyperscale cloud infrastructure.

If a significant part of Anthropic's expanding workloads and model-training spend goes via AWS, Amazon.com, Inc. (NASDAQ: AMZN)'s cloud revenue can witness a strong increase on a quarterly basis.

On the related note, the analyst also noted the company's plans to enhance AWS power capacity. The incremental capex is expected to fetch attractive returns amidst scaling of AI demand, added Post.

Amazon.com, Inc. (NASDAQ:AMZN) operates across e-commerce, digital content, advertising, and cloud computing. Amazon Business could support companies in streamlining procurement automation with tools, which can help efficient purchasing, improved spend management, etc.

We recently covered that TD Cowen reaffirmed its Buy rating on the company's stock, you can read that update here.

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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