Amazon’s (AMZN) cloud computing segment, Amazon Web Services (AWS), will host its re:Invent 2025 conference in Las Vegas from December 1–5. Notably, analysts at Bank of America (BAC) expect it to include major updates about artificial intelligence. These include Amazon’s new Tranium3 AI chips, which reportedly offer double the compute power and 50% more energy efficiency than the previous version. In addition, investors will be watching how these compare to Google’s (GOOGL) TPUs and Gemini models.
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They are also eager to learn more about AWS’ partnership with OpenAI (PC:OPAIQ), especially following OpenAI’s $38 billion commitment to rent AWS compute power. Interestingly, five-star-rated analyst Justin Post believes that a logical next step would be for OpenAI to add frontier model APIs to Amazon’s Bedrock platform.
Even if OpenAI doesn’t make a specific announcement, AWS could still reveal new deals with other chip companies or AI firms, as partnerships across the AI ecosystem continue to grow. Moreover, Trainium, Amazon’s AI chip business, is already worth billions of dollars and grew by 150% quarter-over-quarter in Q3 2025. However, with Tranium3 on the way, more businesses are expected to adopt it. As a result, Bank of America maintains a Buy rating on Amazon with a $303 price target.
Is Amazon a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Strong Buy consensus rating on AMZN stock based on 40 Buys and three Holds assigned in the past three months, as indicated by the graphic below. Furthermore, the average AMZN price target of $294.71 per share implies 31.1% upside potential.
