Amazon (AMZN) Gets $272 Target as OpenAI Models Launch on AWS

Amazon.com, Inc. (NASDAQ:AMZN) is one of the High Flying AI Stocks This Week. On August 6, BofA Securities analyst Justin Post reiterated a Buy rating on the stock with a $272.00 price target. The rating affirmation follows OpenAI’s announcement of new open weight models, the first models available on AWS  (via Amazon Bedrock and Amazon SageMaker AI).

The firm discussed how customers will be able to use Amazon Sagemaker and Amazon Guardrails. The analysts noted that even though the new OpenAI models don’t represent OpenAI’s “leading edge” capabilities, they correspond well with Amazon’s cost savings strategy.

“Customers will be able to use Amazon Sagemaker for pre-training, evaluation, and deployment, as well as Amazon Guardrails for security features. OpenAI’s open weight models may not represent the “leading edge” models (capabilities more similar to a lightweight version of the flagship GPT-4 model), but do fit well with Amazon’s cost savings strategy, as gpt-oss-120b is suggested to be 3x more price-performant vs. Gemini, 5x more than DeepSeek-R1, and 2x vs. OpenAI’s own o4 model.”

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Here is what AWS and OpenAI executives said about the strategic integration:

AWS Director of Product Atul Deo stated: “the unmatched size of our customer base marks a transformative shift in access to OpenAI’s advanced technology”, and OpenAI product lead Dmitry Pimenov stated, “Together with AWS, we’re providing powerful, flexible tools that make it easier than ever for customers to build, innovate, and scale.”

Amazon.com Inc. (NASDAQ:AMZN) is an American technology company offering e-commerce, cloud computing, and other services, including digital streaming and artificial intelligence solutions.

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Disclosure: None.