Amazon (AMZN) Stock Upgraded by Wells Fargo Amid AI Investment Optimism

Wall Street analysts are rallying behind Amazon.com Inc. despite a 5% weekly decline in its shares. Wells Fargo upgraded the stock to Overweight from Equal Weight, citing stronger cloud industry growth and upward revisions to AWS revenue estimates. The firm's $280 price target implies nearly 30% upside from current levels.

Consensus remains overwhelmingly bullish, with 68 of 71 analysts maintaining Buy-equivalent ratings. Price targets cluster between $250 and $297, reflecting confidence in Amazon's $100 billion AI spending plan and projected $15.5-$20.5 billion in quarterly operating income.

The upgrade comes as institutional investors reassess Amazon's valuation framework. While near-term performance has lagged AI hype, analysts see AWS's infrastructure dominance and Anthropic partnership as underappreciated growth drivers in the coming quarters.