In a report released yesterday, Justin Post from Bank of America Securities maintained a Buy rating on Amazon, with a price target of $303.00.
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Justin Post has given his Buy rating due to a combination of factors that highlight Amazon’s strengthening position in artificial intelligence and cloud computing. He points to Amazon’s reported discussions to invest more than $10 billion in OpenAI as a strategic move that could deepen AI collaboration, expand AI workloads on AWS, and showcase the capabilities of Amazon’s Trainium chips. While acknowledging that OpenAI’s latest frontier models are unlikely to be hosted on AWS because of its Microsoft agreement, he views potential eCommerce, advertising, and enterprise AI partnerships with OpenAI as incremental positives that can reinforce Amazon’s ecosystem and protect its high-margin ad business.
In addition, Post underscores the recent AI-focused leadership changes, with Peter DeSantis now overseeing AGI Labs, as a key step to accelerate internal model innovation and custom silicon development. He believes DeSantis’s track record in launching and scaling AWS infrastructure should support faster progress in AI offerings. Combined with AWS’s planned power and capacity expansion, which he expects will enable Amazon to better capture AI-driven cloud demand and reaccelerate AWS revenue growth into the mid‑20% range, these developments support his view that the stock remains attractive, justifying a Buy rating and a price objective of $303 per share.
In another report released yesterday, Wells Fargo also maintained a Buy rating on the stock with a $295.00 price target.