Amazon Eyes $320 as AWS Development Fuels Bullish Outlook

Fast Learn

• Amazon (AMZN) reported Q1 EPS of $2.78, crushing the $1.73 estimate, with income at $181.5B (up 16.61%), AWS reaccelerating to twenty-eight% development (its quickest tempo in 15 quarters), and customized chips reaching a $20B run charge with triple-digit development.

• 24/7 Wall St. has a 12-month worth goal of $320.08 (20.76% upside) with a purchase score at 90% confidence.

• AWS capability commitments from OpenAI (2 GW), Anthropic (5 GW), and over 1 million NVIDIA GPUs in 2026 present multi-year demand visibility, however capital depth stays a threat with Q1 capex up 77% to $44.2B and full-year 2026 capex guided close to $200B.

• The analyst who known as NVIDIA in 2010 simply named his high 10 shares and Amazon wasn’t considered one of them. Get them right here FREE.

Amazon delivered a clear earnings report, and our mannequin leans into the energy. Amazon (NASDAQ:AMZN) trades at $265.06 after rising 27.27% over the previous month, however our proprietary work suggests the rally has room.

Our 24/7 Wall St. worth goal is $320.08 over the following 12 months, implying 20.76% upside. The advice is purchase with 90% confidence.

The analyst who known as NVIDIA in 2010 simply named his high 10 shares and Amazon wasn’t considered one of them. Get them right here FREE.

24/7 Wall St. Value Goal Abstract

A Cloud Reacceleration That Modifications the Math

Amazon shares are up 14.83% yr up to now and 43.73% over the previous yr, close to the 52-week excessive of $265.91. The Q1 2026 report on April 29 was the catalyst. EPS of $2.78 beat the $1.73 estimate, income grew 16.61% to $181.519 billion, and AWS reaccelerated to twenty-eight% development, its quickest tempo in 15 quarters.

Promoting crossed $70 billion in trailing twelve-month income, customized chips topped a $20 billion run charge rising triple digits, and Shops unit development hit 15%, the very best since COVID lockdowns ended. The April 21 announcement of a further $25 billion Anthropic funding tied to a 5GW compute dedication flipped retail sentiment from bearish to bullish in roughly two weeks.

The Case for $371 and Past

Bulls have actual runway. The OpenAI dedication of two GW of Trainium capability starting 2027, Anthropic’s 5 GW dedication, and over 1 million NVIDIA GPUs deploying in 2026 lock in multi-year AWS demand visibility.

Analyst sentiment helps this: 65 purchase or sturdy purchase scores versus 4 holds and nil sells. Our bull case factors to $371.56 by Could 2027, a 40.18% complete return, achievable if AWS holds 28%-plus development and promoting sustains 24% momentum.

The Dangers Value Watching

The bear case facilities on capital depth. Q1 capex hit $44.203 billion, up 76.68% yr over yr, and full-year 2026 capex is guided close to $200 billion. TTM free money stream collapsed 95% to $1.2 billion and long-term debt almost doubled to $119.1 billion.

AWS working margin slipped to 37.7% from 39.5% from a yr prior. Internet earnings of $30.255 billion was inflated by a $16.80 billion Anthropic mark-up that will not recur.

Bulls argue FCF compression displays voluntary funding in capability backed by signed buyer commitments. Polymarket merchants are extra cautious than analysts, with composite prediction sentiment at 36.66. A bear case lands AMZN at $273.70 by Could 2027 if tariffs and recession fears drag spending.

Backside Line

The 24/7 Wall St. worth goal of $320.08 with purchase and 90% confidence is anchored by AWS reacceleration and customized silicon that rivals cannot replicate shortly.

The bull thesis strengthens if Q2 working earnings lands above the $24 billion excessive finish. The thesis weakens if AWS development slips beneath 22% or 2026 capex blows by means of $210 billion with out commensurate income commitments.

Amazon Value Prediction 2026-2030

Our mannequin initiatives Amazon’s buying and selling vary in coming years, assuming present development trajectories maintain.

These projections assume Amazon executes on AWS, promoting, and customized silicon. Vital upside or draw back may end result from Anthropic and OpenAI capability ramps, Amazon Leo’s industrial trajectory, or recessionary pullback in enterprise IT spend.

The analyst who known as NVIDIA in 2010 simply named his high 10 AI shares

This analyst’s 2025 picks are up 106% on common. He simply named his high 10 shares to purchase in 2026. Get them right here FREE.