Analyst Justin Post of Bank of America Securities maintained a Buy rating on Amazon (AMZN – Research Report), retaining the price target of $257.00.
Justin Post has given his Buy rating due to a combination of factors, primarily driven by Amazon’s strong position in the AI and cloud computing sectors. The CEO of Amazon, Andy Jassy, highlighted the immense demand for AI capabilities, particularly through Amazon Web Services (AWS), which is experiencing growth despite current chip supply constraints. This demand is expected to accelerate as chip availability improves later in the year, aligning with the company’s strategic focus on AI advancements.
Additionally, Amazon’s introduction of Alexa+ with over 100 new GenAI features and the development of a new quantum computing chip named Ocelot further demonstrate the company’s commitment to innovation. These initiatives not only enhance Amazon’s product offerings but also position the company to capitalize on emerging technology trends. These strategic moves, alongside cost-saving measures and potential growth in AWS, underpin Post’s positive outlook and Buy rating for Amazon’s stock.
In another report released yesterday, JMP Securities also maintained a Buy rating on the stock with a $285.00 price target.