Bank of America: AWS Capex Returns to Drive Amazon Stock Despite Margin Volatility
- Grace N
- Feb 10
- 1 min read
Bank of America has reiterated its "Buy" rating for Amazon, projecting that returns on AWS capital expenditures will become the primary driver for the stock in the coming years. Following Amazon's announcement of a $200 billion investment plan for 2026, analysts noted that while the increased spending on AI infrastructure may cause short-term margin volatility, the added capacity is expected to be fully utilized. Consequently, the firm adjusted its price target to $275, citing the necessity of these investments for maintaining competitiveness in the AI sector.
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