Amazon (AMZN) Stock Gets Boost as AWS Growth Accelerates and AI Demand Surges

Core Insights - Amazon.com, Inc. is gaining attention as a leading AI stock on Wall Street, with a Buy rating and a price target of $300.00 from TD Cowen analyst John Blackledge, who highlights the company's strong positioning amid rising AI demand and cloud infrastructure growth [1] Financial Performance - Amazon's AWS revenue grew by 20.2% year-over-year in Q3 2025, an increase from 17.5% in Q2 2025 [1] - AWS is projected to generate $128.1 billion in revenue for 2025, reflecting a 19.1% year-over-year growth, and is expected to reach $348.5 billion by 2030, indicating a 22% compound annual growth rate (CAGR) [3] - AWS operating income is forecasted to rise to $45.9 billion in 2025 and $117.8 billion in 2030, representing a 21% CAGR [3] Strategic Developments - Amazon has a $200 billion backlog, which does not include several unannounced deals from October [2] - A significant multi-year deal with OpenAI involves a $38 billion commitment for the AI startup to utilize AWS compute resources, including "hundreds of thousands" of Nvidia GPUs and the potential for scaling to "tens of millions" of CPUs for agentic workloads [2] - AWS's Trainium chips business has achieved a multi-billion dollar run rate, growing over 150% quarter-over-quarter in Q3 2025 [2][3]