Amazon (AMZN) Amazon shares tested an all-time high on Tuesday, adding to a recent breakout to trade above 200. Earlier in the day, an Amazon stock analyst said the tech giant’s cloud business is near an AI “inflection point.”
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Amazon’s Market Capitalization released 2,000 billion dollars AMZN advanced for the first time last week, thanks to a breakout from a stable base buy point of 191.70. An intraday high of 200.43 on Tuesday marked the first time AMZN shares have topped 200, following a 20-for-1 stock split in June 2022.
Shares were down slightly and were at 200.06 at last check, representing a 1.4% gain for Amazon on the market. Stock market today.
Analyst Sees Inflection Point in AI
Amazon’s stock rally follows a positive analyst report. Mizuho analyst James Lee wrote to clients Tuesday that the company is maintaining Amazon’s stock as its top pick, following a quarterly survey of Amazon Web Services customers.
Lee expects AWS’s generative AI offering to help fuel annual sales growth in 2024 above the 18% analysts have forecast, on average, according to FactSet.
“Gen-AI projects are approaching an inflection point, with outward-facing models six months away from commercial deployments,” Lee wrote to clients. “With this in mind, we have reinforced our conviction in AWS acceleration and our forecast for above-average 20% revenue growth.”
Lee reiterated a price target of 240 for Amazon stock.
Andy Jassy, Amazon’s CEO, who will complete his term third full year of work Generative artificial intelligence was placed at the heart of Amazon’s future plans on Friday. AWS’s cloud business hopes to capitalize on it by leasing access to the vast computing power needed to train and operate AI algorithms. AWS is a key profit driver for Amazon and competes with Microsoft (MSFT) and Google’s parent company Alphabet (GOOGLE).
To support its AI ambitions, Amazon plans to spend more than $100 billion over the next decade on data centers, the report said. the wall street journal reported on Monday.
Amazon shares: up more than 30% this year
After a rough 2022, Amazon stock has rallied more than 80% in the past year. But before last week’s breakout, shares had yet to decisively surpass their July 2021 highs near 188.
But Amazon shares have gained 31.5% this year and are now firmly in record territory. The shares have easily outpaced the S&P 500’s roughly 15% gain.
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