Amazon (NASDAQ:AMZN) is gearing up for its AWS Summit in New York City, set to take place tomorrow (Wednesday), where the spotlight will be on the latest advancements in generative AI. Among the key themes expected to dominate the event is agentic AI – an emerging approach that allows AI systems to act more independently and handle complex tasks across diverse settings.
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Swami Sivasubramanian, VP of AWS Agentic AI, will lead the keynote, and he’ll be joined by Rohit Prasad, Amazon’s SVP and Head Scientist for Artificial General Intelligence. According to a recent TechCrunch report, AWS is expected to announce the launch of an AI agent marketplace at the event, with Anthropic playing a central role as a key partner.
Keeping a tab on proceedings, Monness’s Brian White, an analyst who ranks amongst the top 1% of Street stock experts, notes that rollout of AI agents by major software and internet firms has “gained momentum” this year. White points to Amazon’s Alexa+ as a consumer-facing example – currently available to over one million users in the U.S. – highlighting the growing push toward more personalized, intelligent services. On the enterprise side, AWS provides robust support for AI agent development through its full-stack offerings, including Amazon Bedrock, SageMaker, and Amazon Q. In December, Amazon also introduced Amazon Nova, a suite of proprietary foundation models available exclusively through Bedrock, designed to power a wide range of tasks, including AI agent creation. Meanwhile, Salesforce has emerged as a strong advocate for the “digital labor movement,” aiming to enable one billion AI agents through its Agentforce initiative by the end of the year.
As AWS continues to expand its AI capabilities, its database services are becoming increasingly important to enterprise adoption of generative AI. Databases play a vital role in enabling generative AI initiatives, and AWS provides a broad portfolio of database solutions to support these efforts. Most recently, Amazon announced the general availability of Oracle Database@AWS, with initial support rolled out in two AWS Regions: Northern Virginia and Oregon.
All told, White keeps a bullish stance on the internet giant but adds a note of caution. “We believe Amazon will continue to capitalize on the cloud, expand its digital ad business, innovate with gen AI, and realize efficiencies from a regional fulfillment network; however, regulatory headwinds persist and the macro is treacherous,” the 5-star analyst summed up.
Bottom line, White maintained a Buy rating on AMZN shares, backed by a $265 price target. There’s potential upside of 17.5% from current levels. (To watch White’s track record, click here)
Barring one skeptic, all of White’s colleagues agree with that stance; with an additional 43 Buys, the stock naturally claims a Strong Buy consensus rating. At $251.03, the average target factors in a one-year gain of 11%. (See Amazon stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.