TD Cowen analyst John Blackledge has maintained their bullish stance on AMZN stock, giving a Buy rating on February 16.
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John Blackledge has given his Buy rating due to a combination of factors including Amazon Web Services’ (AWS) anticipated growth in generative AI (GenAI) revenue. He projects that AWS’s GenAI revenue will significantly increase from approximately $2.8 billion in 2024 to $56.3 billion by 2030, highlighting a compound annual growth rate of 51% from 2025 to 2030.
Another factor influencing the Buy rating is the substantial role Anthropic plays in AWS’s GenAI revenue stream. In 2024, about half of AWS’s GenAI revenue was attributed to Anthropic. Blackledge estimates that by 2027, AWS’s GenAI revenue from Anthropic could reach between $7 billion and $17 billion, depending on various scenarios. Furthermore, AWS’s capital expenditure is expected to rise to approximately $76 billion in 2025, driven by the need to build out GenAI infrastructure to meet increasing AI demand.
In another report released on February 16, Mizuho Securities also reiterated a Buy rating on the stock with a $285.00 price target.