Amazons AI dominance boosts stock to top pick status

Amazons AI dominance boosts stock to top pick status

Mizuho analysts upgrade Amazon to ‘Top Pick’ for the second half of 2023, citing strong interest in Amazon Web Services’ generative AI solutions, resulting in a 39% hike in stock price target to $160 per share.

Following a major slump in 2022, Amazon’s (NASDAQ: AMZN) stock has recovered sharply in the year, thanks to a powerful combination of robust earnings, and the company’s expanding cloud business. 

On the other hand, most  significantly, the exponential growth of the artificial intelligence (AI) field has led to Amazon shares receiving a major lift from Mizuho analysts on Wednesday, May 24. 

The financial specialists upgraded AMZN to their ‘Top Pick’ for the Second half of 2023, citing strong interest in Amazon Web Services’ (AWS) generative Artificial Intelligence (AI) solutions. The analysts believe that AWS will witness a fall in revenue growth in the present quarter, before staging a powerful rebound in the Second part of the year.

“Case studies show that AWS wins over clients on intelligence privacy and data security. Furthermore, Gen- Artificial Intelligence (AI) is priced meaningfully higher than conventional computing, so it is both revenue and margin accretive. Owing to strong demand, AWS clients are shifting their savings from optimization to Gen-AI.”

– Mizuho analysts wrote in the note to clients.

Further, Mizuho brokers hiked Amazon’s stock price target to $160 per share, which is greater than 39 percent higher than the stock’s current price level. 

Amazon stock price analysis

At the time of publication, shares of Amazon were currently worth $115.34, climbing slightly in premarket trading after closing at $114.99 on Tuesday. 

The stock experienced a broad trading range in the past 30 days from $102.05 to $118.40. During that period, AMZN gained over 8.3%. 

Year-to-date, the e-commerce and tech giant saw its share price soar by nearly 35%.

AMZN 1-year price forecast

In the previous 90 days, 51 analysts offered their views on AMZN, giving the stock a consensus rating of ‘strong buy.’ This is according to 38 analysts seeing the company’s shares as a ‘strong buy,’ 8 suggesting a ‘buy,’ and 4 advising a ‘hold.’ In the meantime, just 1 analyst rated the stock as a ‘strong sell.’

Amazons AI dominance boosts stock to top pick status
1-year price prediction  for AMZN. Source: TradingView

The financial specialists likewise provided their 1-year price forecasts for Amazon, resulting in an average price target of $132.84, up greater than 14 percent from the present price. 

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