Analyst sets Amazon stock price target

Core Viewpoint - Goldman Sachs maintains a Buy rating on Amazon with a price target of $290, following the AWS re:Invent conference, despite AMZN stock trading at approximately $229.11, down 1.41% for the day and 8.43% over the past month [1]. Group 1: AWS and AI Positioning - Key announcements at the re:Invent conference reinforced Amazon's positioning in artificial intelligence, machine learning, and custom cloud silicon, providing clarity on capturing enterprise-scale AI demand [2]. - The combination of the recent earnings report and insights from re:Invent is seen as a positive step in enhancing investor sentiment regarding AWS's AI thematic positioning [3]. - AWS's strategy aims to capitalize on the growing prevalence of AI, similar to Amazon's previous leadership in cloud computing and storage [6]. Group 2: Growth Potential - There are two major supportive themes: the potential for Amazon to re-accelerate top-line growth and AWS's role in advancing from foundational AI models to more sophisticated enterprise deployments, which include agents, application development, and workload migration with improved cost efficiency [4]. - AWS's approach to artificial intelligence mirrors the successful characteristics of Amazon's e-commerce strategy, such as a wide range of offerings, ease of adoption, and a long-term focus on customer needs [5]. - Goldman Sachs projects that AWS can sustain a revenue compound annual growth rate (CAGR) of approximately 20% or higher over the next three years [6].