Wall Street analysts are adjusting their targets for Amazon’s stock after a strong second-quarter report. Amazon Web Services (AWS) posted $42.23 billion in revenue, marking a 36.7% increase year-over-year. This fueled renewed optimism among top analysts who foresee significant upside potential for Amazon’s shares.
Jeffrey Wlodarczak of key Research increased his 12-month price target for Amazon from $320 to $333, suggesting the stock could climb 25.8% from its recent close of $235.99. During pre-market trading, shares even touched $264.67 on July 31, highlighting growing investor interest.
Other prominent voices joined the bullish sentiment. John Blackledge from TD Cowen raised his target to $350 from $340, while Piper Sandler and Bernstein both nudged theirs up to $320. These upgrades come amid an expanding AI chip business integrated into AWS, which Bernstein projects could hit a $25 billion AI revenue run rate soon. Piper Sandler also noted that despite plans to increase capital expenditures to $220 billion by 2026, driven by rising memory costs, Amazon’s core business momentum remains strong.
Analyst consensus and what lies ahead
Amazon CEO Andy Jassy highlighted the booming AWS segment during the earnings call, reinforcing confidence in the company’s cloud strategy. According to a TipRanks survey of 30 Wall Street analysts, the average 12-month price target stands at $318.46, implying a potential 20.3% gain from current levels. If Amazon reaches this forecast, it would set a new all-time high for the stock.
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