Jim Cramer, the host of Mad Money on CNBC, recently shared his thoughts on Amazon (AMZN) by saying that the market isn’t giving the company enough credit. Indeed, he wondered why investors seem to dislike tech giants Amazon and Apple (AAPL), even though both just reported strong earnings. Cramer admitted that each company has its weaknesses, with Amazon’s being that it doesn’t currently have the right chips to attract major AI developers away from OpenAI. Still, he stressed that it has plenty of money to solve this issue.
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To make his point, Cramer gave an example: Amazon could call up Jensen Huang, the CEO of Nvidia (NVDA), and order every Blackwell chip available, plus 25% of next year’s ultra-fast Vera Rubin chips. With that kind of firepower, Cramer argued, Amazon could win back the developer business it has lost. As a result, he believes that the only thing holding Amazon back is choosing to act, not that it is missing the ability to compete.
Cramer also stated that Amazon has already started to respond. In fact, he pointed to a small blog post that announced a new partnership between Amazon Web Services and OpenAI. This move could help keep AWS customers from switching to other platforms they view as more advanced. Cramer was surprised that the news didn’t boost Amazon’s stock by saying he expected it to jump five points. Instead, he said, “nobody cared,” calling the market’s reaction unfair.
What Is the Price Target for AMZN Stock?
Turning to Wall Street, analysts have a Strong Buy consensus rating on Amazon stock based on 43 Buys and one Hold assigned in the past three months. Furthermore, the average AMZN stock price target of $264.21 per share implies 18.4% upside potential from current levels.
