William Blair analyst Dylan Carden has maintained their bullish stance on AMZN stock, giving a Buy rating on May 14.
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200% short exposure to AMZN with AMZODylan Carden has given his Buy rating due to a combination of factors tied to Amazon’s accelerating data center and AI infrastructure investments. Drawing on insights from a former AWS supply chain leader, he highlights that Amazon’s capital expenditures are on track to reach about $200 billion by 2026, underscoring management’s commitment to scaling AI capacity despite higher costs per gigawatt and growing supply chain complexity.
Carden also emphasizes that, while AI-related hardware, power, and labor have become significantly more expensive and face bottlenecks, the expected returns on invested capital for these projects should be at least comparable to historical levels. He views Amazon’s willingness to absorb higher upfront spending on technologies like liquid cooling and advanced accelerators as a strategic move that can enhance long-term efficiency, extend asset usefulness, and support durable growth in AWS and broader cloud demand, justifying a Buy rating.
In another report released on May 14, Bank of America Securities also reiterated a Buy rating on the stock with a $310.00 price target.