Amazon NASDAQ:AMZN drew favorable reactions from several Wall Street analysts after its latest results showed faster cloud growth and improved profitability.
Amazon Web Services grew 37% in the quarter, while its backlog also accelerated. RBC Capital Markets analyst Brad Erickson raised his price target to $330, saying the results supported the view that rising artificial intelligence spending may not weigh as heavily on returns as previously expected.
Amazon also received support from Morgan Stanley. Analyst Brian Nowak cited stronger AWS growth, profitability and backlog trends, while pointing to developing opportunities in grocery, robotics and AI agents.
Bank of America analyst Justin Post said Amazon's position in AI has improved over the past year. He estimated AI-related revenue now represents 15% of AWS sales, supported by additional capacity, Trainium chips and demand for Bedrock.
Amazon also remained a top pick at Wells Fargo. Analyst Ken Gawrelski raised estimates and his target, citing AWS growth, better margins and expectations for faster capacity expansion as the cloud backlog increases.