FMPFMP
Datasets
Market News/Amazon (NASDAQ: AMZN) Price Target Raised on Strong AWS Demand and AI Investments

Amazon (NASDAQ: AMZN) Price Target Raised on Strong AWS Demand and AI Investments

·

·1 min read
Market News
  • Analyst Ivan Feinseth of Tigress Financial has raised the price target for Amazon (NASDAQ: AMZN) stock to $385.00 from $315.00, indicating a potential 50.80% upside.
  • Amazon Web Services (AWS) is experiencing high demand, with 2027 capacity reserved and potential for increased profitability from recent price increases.
  • Amazon is making substantial investments, approximately $200 billion, in AI infrastructure, custom chips, and satellites, backed by $98 billion in new debt.

Amazon operates an online marketplace and Amazon Web Services (AWS), its cloud-computing business. On October 6, 2026, Ivan Feinseth of Tigress Financial raises his price target for the stock to $385.00 from $315.00. At the cited price of $255.37, the new target is about 50.80% above the stock’s price.

AWS demand is one reason investors may see room for growth. As highlighted by Seeking Alpha, demand for its cloud services is outpacing supply, and much of its 2027 capacity is already reserved. The analysis says recent price increases could also help AWS turn more of its revenue into profit.

Expanding that capacity takes substantial spending. As highlighted by 24/7 Wall Street, Amazon has committed roughly $200 billion to AI infrastructure, custom chips and satellites. A Seeking Alpha author says $98 billion in new debt supports data centers and major stakes in Anthropic and OpenAI. Debt adds interest costs, which the author considers manageable relative to operating profit.

The Seeking Alpha author also adjusts for one-time items in last year’s results, putting the comparable third-quarter profit benchmark at $21.7 billion rather than $17.4 billion. On that basis, the author expects Amazon could exceed the top end of its profit guidance.

Valuation is another part of the case for a higher target. As highlighted by Motley Fool, Amazon’s price-to-earnings ratio appears low compared with its own history, though recent gains from investments in other companies have lifted earnings. That matters because higher earnings can make the ratio look lower without a change in the stock price.

About the Author

Rayan Ahmad

Market news and analyst rating coverage

Rayan Ahmad covers market news, analyst rating changes, and company developments for the FMP blog. His work focuses on summarizing price-target updates, earnings results, and broker actions into accessible, data-backed market updates.

Financial data for every need

Real-time quotes and 30+ years of historical data, including prices, fundamentals, and insider transactions — all accessible via API.