Amazon.com, Inc. (NASDAQ: AMZN) stock surged 4% to $254 after announcing a $38 billion multi-year partnership with OpenAI, aimed at enhancing AWS’s computing infrastructure for AI workloads. Analysts at Wedbush, Dan Ives and Scott Devitt, raised Amazon’s price target from $330 to a Street-high of $340, reflecting the anticipated growth from this collaboration. Initially, OpenAI will utilize existing AWS data centers, while Amazon plans to expand its dedicated infrastructure by 2026. This partnership is viewed as a continuation of Amazon’s strategy, following a similar agreement with Anthropic, solidifying its position in AI cloud services. AWS has already achieved an annual run rate exceeding $130 billion, driven by rising demand for AI and core services. With plans to double capacity by 2027, Wedbush anticipates continued momentum for AWS, underpinned by significant backlog growth and a higher capital expenditure outlook for 2025.
Source link
Share
Read more