Analyst revamps Amazon stock target after hitting new record

Core Insights - Amazon's stock reached an all-time high of $254 following a $38 billion deal with OpenAI, which allows OpenAI to utilize Amazon Web Services (AWS) infrastructure [1] - The deal is expected to grow over the next seven years, with AWS providing advanced infrastructure for OpenAI's generative AI workloads [2] - AWS revenue increased by 20% year-over-year to $33 billion, with operating income rising 9% to $11.4 billion, contributing significantly to Amazon's overall profitability [3] AWS Performance - AWS has shown strong momentum, with CEO Andy Jassy noting a focus on accelerating capacity, having added over 3.8 gigawatts in the past year [4] - The partnership with OpenAI positions Amazon competitively against cloud rivals like Microsoft and Alphabet in the AI infrastructure sector [4] Market Reactions - Wedbush analysts raised Amazon's stock price target from $330 to $340, citing the OpenAI partnership as a positive step towards expanding AI services [6] - Analysts expressed optimism about demand growth in the coming quarters, noting AWS's capacity has doubled since 2022 and is expected to double again by 2027 [7] Valuation Perspective - The current valuation of Amazon is considered attractive, with potential for further multiple expansion [8]