Wall Street Banks Bullish on Amazon Stock Amid AI Infrastructure Expansion
Bank of America has reaffirmed its buy rating for Amazon stock, setting a $275 price target that implies 30.6% upside potential. The bullish stance comes despite market concerns over Amazon's $200 billion capex guidance for 2026, which exceeded Wall Street expectations by $52 billion.
BofA analysts argue the market misunderstands Amazon's AI infrastructure strategy. AWS has already doubled its power capacity from 8.0 GW in 2022 to nearly 15 GW by Q3 2025, with each additional GW generating $5.4 billion in incremental sales. The bank projects AWS could reach 31.4 GW capacity by 2027, potentially driving revenues to $45 billion - significantly above consensus estimates.
The growth of AI startups like Anthropic further supports Amazon's cloud computing thesis. Multiple major institutions including Citi, UBS and Wells Fargo have joined BofA in raising targets, reshaping Amazon's Wall Street narrative.
