Wall Street Raises Amazon Price Targets as AWS Growth Reaccelerates on AI Demand

Wall Street analysts are turning increasingly bullish on Amazon, with major firms like Citi and JPMorgan raising their price targets to around $285 due to a reacceleration in Amazon Web Services (AWS). This renewed growth—which hit its fastest pace in 13 quarters in Q4 2025 at 24%—is being driven heavily by surging enterprise demand for artificial intelligence workloads. However, analysts note that the narrative has shifted from proving AI demand to proving the returns on Amazon's massive capital expenditures. The company's infrastructure spending is projected to soar to roughly $200 billion in 2026, putting short-term pressure on free cash flow. Fortunately for Amazon, its rapidly scaling, high-margin advertising business—which generated $21.3 billion in Q4 2025—is providing a critical profit cushion to help fund this historic AI buildout.

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