Citi Raises Target Price for Amazon.com (AMZN)

Amazon.com Inc. (NASDAQ:AMZN) is one of the 10 best stocks that recently issued new debt.

On March 25, Citi increased its price target on Amazon.com Inc. (NASDAQ:AMZN) from $265 to $285 while maintaining a Buy rating on the stock. The firm has also raised its estimates for Amazon Web Services, driven by the ongoing need for AI after analysing the revenue contributions of Anthropic, OpenAI, and core workloads.

stoatphoto/Shutterstock.com

Citi predicts 28 percent year-over-year revenue growth for AWS in the first quarter, and 29 percent in 2026. The growth rate is expected to rise to 37 percent in 2027 as the partnerships between Amazon’s Anthropic and OpenAI kick in.

Back on February 23, Wells Fargo maintained an Overweight rating on Amazon.com Inc. (NASDAQ:AMZN). The firm reduced its price target from $305 to $304. Wells Fargo highlighted compute capacity as a key success factor, noting that AI-driven demand is expected to exceed supply in the near to medium term.

The firm also expects hyperscaler capacity to double up to 98GW, with annual CapEx reaching $860 billion by 2027. It highlighted significant expansion in the cloud industry as compared to street estimates, supporting a more constructive long-term outlook for the company and broader industry.

Amazon.com, Inc. (NASDAQ:AMZN) is a technology company engaged in e-commerce, cloud computing, streaming, AI solutions, and physical retail. It offers consumer retail, advertising, and subscription solutions through an extensive network of online and brick-and-mortar stores worldwide. The company also develops and sells electronic devices such as Kindle, fire tablets, fire TVs, blink, and eero.

While we acknowledge the risk and potential of AMZN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AMZN and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.

Disclosure: None. Follow Insider Monkey on Google News.