Bank of America Says AWS Capex Returns Will Drive Amazon.com (AMZN) Shares

Core Viewpoint - Amazon.com, Inc. (NASDAQ:AMZN) is recognized as a significant player in the AI sector, with Bank of America reiterating a "Buy" rating based on anticipated returns from AWS capital expenditures (capex) [1][6]. Group 1: AWS Capex and Investment Strategy - Bank of America projects that returns on AWS AI capex will be the primary driver for AMZN's stock performance over the coming years, despite expected quarterly margin volatility due to capacity ramp-up [2]. - Amazon plans to increase its capex by over 50%, from nearly $130 billion in 2025 to a total of $200 billion, primarily focusing on AWS, which exceeds analyst expectations of around $150 billion [2]. Group 2: Competitive Landscape - Amazon's investment strategy is seen as logical given AWS's leading customer and revenue base, positioning the company favorably against competitors in the cloud computing sector [3].