At Extreme Investor Network, we are always on the lookout for the latest insights and trends in the world of investing. Today, we want to highlight Amazon’s artificial intelligence potential, which some analysts believe is being underappreciated by investors.
According to BMO Capital Markets’ Brian Pitz, Amazon has launched over two times the number of AI services than Microsoft and Google combined since 2023. This shows that Amazon is positioning itself strongly in the AI space and has the potential to win its fair share of AI workloads. Pitz has an outperform rating on Amazon with a price target of $220, indicating a 10% upside from Wednesday’s close.
JPMorgan analyst Doug Anmuth also sees great potential in Amazon’s AI initiatives, predicting ongoing and accelerating revenue growth through 2024 and over 20% growth in 2025. He considers Amazon a best idea stock, especially with Amazon Web Services (AWS) offering a “best-in-class” array of large language models and foundation models tailored to developer needs. Anmuth has an overweight rating on the stock and a $240 price target, suggesting a 20% upside potential.
Amazon recently showcased its AI platform, Bedrock, at the Amazon Web Services summit in New York. The company highlighted how customers are implementing AI workloads and the rapid growth of Bedrock. With Amazon shares rallying about 30% year to date, analysts like Citi’s Ronald Josey are confident in AWS estimates for the second quarter and beyond. Josey believes that demand is shifting towards companies offering multiple specialized models and maintains a $245 price target on Amazon, calling it a top Internet pick.
Overall, the outlook for Amazon’s AI potential is promising, and investors may be underestimating the significant impact it could have on the company’s future growth. Stay tuned to Extreme Investor Network for more insights and recommendations to help you make informed investment decisions.