This post was originally published on this site
https://i-invdn-com.investing.com/news/LYNXNPEB87094_M.jpg
The analysts raised the Amazon stock target to $160 per share after channel checks showed AWS’ generative AI demand has been accelerating.
“Case studies show that AWS wins over clients on intelligence privacy and data security. Furthermore, Gen-AI is priced meaningfully higher than conventional computing, so it is both revenue and margin accretive. Due to strong demand, AWS clients are shifting their savings from optimization to Gen-AI,” they said in a client note.
Moreover, the analysts believe that AWS revenue growth will likely trough in this quarter before starting a rebound in the second half of the year. As a result, they lifted Amazon to a Top Pick status for the second part of 2023.
“We expect a multiple expansion as concerns on AMZN’s AI-market-position diminish,” the analysts wrote.
Amazon stock is up 0.6% in premarket Wednesday.
