As Demand for AWS’ AI Surges, Citi and JPMorgan Raise Amazon Price Targets

3 hours ago 4

Joel South

Wed, March 25, 2026 astatine 11:34 AM CDT 4 min read

Amazon (AMZN) faces a $285 terms people from Citi and JPMorgan pursuing simultaneous upgrades connected March 25, 2026, some centered connected AWS AI request accelerating to 28-29% maturation successful 2026 and 37% successful 2027, with customized spot gross (Trainium and Graviton) moving supra $10B annually astatine triple-digit growth.
Citi and JPMorgan expect Amazon’s AWS part and $200B successful planned 2026 superior expenditures to thrust aggregate enlargement and net growth, though trailing twelve-month escaped currency travel declined 37% year-over-year owed to the CapEx surge.
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Amazon (NASDAQ:AMZN) has pulled backmost much than 6% this twelvemonth and is up 2.15% implicit the past week, sitting astir $211.80 but good disconnected its 52-week precocious of $258.60. The one-year summation stands astatine a humble 2.96%, with astir analysts clustering astir the Street statement people of $280.47. But connected March 25, 2026, 2 of Wall Street's astir influential firms moved simultaneously and with conviction.

Citi raised its terms people to $285 from $265, maintaining a Buy rating. JPMorgan raised its people to $280 from $265, keeping an Overweight standing and naming Amazon its champion idea. Both upgrades halfway connected the aforesaid thesis: AWS AI request is accelerating faster than the broader marketplace appreciates. The expert statement people of $280.47 crossed 67 analysts reflects wide bullishness, but Citi's $285 sits astatine the apical of that range. The question is whether AMZN tin scope $285 by the extremity of 2026.

Citi upped its AWS estimates aft analyzing gross contributions from Anthropic, OpenAI, and halfway workloads, projecting AWS gross maturation of 28% year-over-year successful Q1 and 29% for full-year 2026, accelerating to 37% successful 2027 arsenic Amazon's Anthropic and OpenAI partnerships ramp. That projection runs good up of AWS's already awesome Q4 FY2025 maturation of 24% year-over-year, itself the fastest maturation successful 13 quarters. The re-acceleration inclination supports the call: AWS grew 17% successful Q1 FY2025, 17% successful Q2, 20% successful Q3, and 24% successful Q4.

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AWS AI Monetization: JPMorgan projects AWS maturation of 29% successful Q1, 30% successful Q2, 29% successful Q3, and 28% successful Q4 2026, driven by accepted workloads shifting to unreality and greater AI adoption. This conception represents durable, recurring gross with expanding margins that person compounded implicit years.
Proprietary AI Infrastructure: Amazon's customized spot concern (Trainium and Graviton) carries a combined yearly gross tally complaint supra $10 cardinal with triple-digit percent maturation year-over-year. Owning the silicon furniture reduces AWS outgo operation and deepens lawsuit lock-in implicit time.
Advertising Scale: Advertising Services generated $21.32 cardinal successful Q4 FY2025, up 23% year-over-year, a high-margin concern that compounds softly alongside the halfway retail and unreality operations.