Investors may be undervaluing Amazon’s potential in the realm of artificial intelligence, according to analysts. Despite the general belief that Amazon lags behind other tech giants in AI capabilities, the company has actually launched more AI services than Microsoft and Google combined since 2023. This indicates that Amazon is well-positioned to capture a significant portion of AI workloads in the future, especially with its platform approach using Bedrock.
Analysts like Brian Pitz from BMO Capital Markets and Doug Anmuth from JPMorgan are bullish on Amazon’s AI prospects, with Pitz giving the stock an outperform rating and a price target of $220, while Anmuth views AWS as offering top-notch language models and foundation models for developers. Both analysts foresee strong revenue growth in the coming years, with Anmuth even calling Amazon a best idea and setting a price target of $240.
The recent Amazon Web Services summit in New York further showcased the company’s AI capabilities, particularly with its Bedrock platform. This has led to a 30% increase in Amazon’s stock value year to date, with analysts like Citi’s Ronald Josey reaffirming their confidence in AWS estimates for the future. Josey believes that the demand for specialized AI models is on the rise, making Amazon’s AI offerings even more attractive.
In DailyBubble’s opinion, Amazon’s focus on AI and its innovative approach with Bedrock positions the company well for long-term success in the AI space. The company’s commitment to expanding its AI services and catering to developer needs is likely to drive further growth and shareholder value in the years to come.