Analysts Reaffirm Buy Rating on Amazon Stock (AMZN), Citing AWS Growth Potential

Following Amazon's (AMZN) annual AWS (Amazon Web Services) re:Invent conference held from December 1 to 5, several analysts reiterated their bullish stance on AMZN stock. In particular, they noted artificial intelligence (AI)-led growth potential in AWS. The e-commerce and cloud computing giant made several key announcements at the event, including the rollout of new Nova GenAI models. Let's look at the views of some analysts on AWS' updates.TipRanks Cyber Monday Sale Claim 60% off TipRanks Premium for data-backed insights and research tools you need to invest with confidence. Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off Analysts Are Confident About AWS' Growth Following the updates at the event, TD Cowen analyst John Blackledge reiterated a Buy rating on Amazon stock with a price target of $300. The 5-star analyst noted the key launches at the event, including new Nova GenAI models (such as Omni) and custom Trainium 3 UltraServers, with up to 50% cost reduction and up to 4.4x higher compute performance than Trainium 2. He also mentioned new agentic AI features like AgentCore and QuickSuite, as well as the update on Zoox rideshare AVs (autonomous vehicles), which run on AWS. Blackledge expects AWS to gain from continued revenue acceleration, driven by the broader AI boom. He expects AWS revenue to grow 19.1% to $128.1 billion in 2025, increase by 22.9% in 2026, and by 23.9% in 2027. Overall, the analyst expects AWS revenue to grow at a CAGR (compound annual growth rate) of 22% in the 2025-2030 period to $348.5 billion. Furthermore, he expects AWS' operating income to increase to $45.9 billion in 2025 and $117.8 billion in 2030, reflecting a 21% CAGR over the five-year tenure. Likewise, Goldman Sachs analyst Eric Sheridan reiterated a Buy rating on AMZN stock with a price target of $290. Sheridan stated that Amazon's recent earnings report and the AWS re:Invent event reinforced the company's ability to re-accelerate top-line growth and the role that the cloud unit will play as the AI theme evolves. The 4-star analyst continues to believe that AWS can generate revenue growth at a CAGR of around "20%+" over the next three years. Also, KeyBanc analyst Justin Patterson reiterated a Buy rating on Amazon stock with a price target of $303. Commenting on the AWS re:Invent event, the analyst said that he is "encouraged" by Amazon's initiatives to provide more flexible AI offerings, from models to silicon deployments. "Customer choice has long been a core tenet of AWS, and our customer conversations suggest reception to AWS is improving," said Patterson. Given the company's efforts to boost AWS capacity over the next two years, Patterson expects revenue growth of "+21%" into 2026. What Is the Target Price for Amazon Stock? With 43 Buys versus just one Hold rating, Wall Street has a Strong Buy consensus rating on Amazon stock. The average AMZN stock price target of $295.63 indicates about 29% upside potential from current levels.