JPMorgan Raises Amazon Stock Price Target Following Strong AI-Driven Earnings
Following a strong earnings report showing measurable returns on its artificial intelligence (AI) investments, JPMorgan has raised its price target for Amazon stock. The bank's analyst Doug Anmuth increased the target to $365 from $330 while maintaining an Overweight rating and Best Idea status for AMZN. This adjustment reflects a reassessment of AWS’s growth potential amid rising cloud sales, operating profit expansion, and record backlog levels. AWS revenue grew 37% year-over-year, with its AI-related businesses showing triple-digit annualized growth. Despite concerns over cash flow due to increased infrastructure spending, Amazon delivered robust top-line results, including a 20% overall sales increase—the fastest in two decades. JPMorgan now believes AWS is demonstrating tangible demand for cloud and AI services rather than just making promises. The stock surged nearly 15% post-earnings on July 31, marking its largest one-day gain since 2012. The rally added over $388 billion in shareholder value, pushing Amazon’s market cap to $2.95 trillion.
Topics: AI investment Amazon AWS JPMorgan price target