Mizuho raised its price target on Amazon to $325 from $315 and kept an Outperform rating, saying the company’s cloud arm is emerging as the backbone for AI infrastructure. The call came as Amazon shares last traded near $260, leaving the stock up 13% year to date and 38% over the past year.
The new target also sits above the $283.82 analyst consensus, underscoring how far the bullish case has moved. Mizuho lifted its estimates after incremental disclosures around scaling chip and AI revenue at AWS, while pointing to new cloud deals with OpenAI, Anthropic and Meta Platforms as catalysts. For investors watching the amzn stock price, the argument is no longer just about retail traffic or holiday sales. It is about whether AWS can keep turning AI demand into durable growth.
Amazon’s latest quarter gave bulls material to work with. In the fourth quarter, revenue reached $213.39 billion, up 14%, while AWS posted $35.58 billion in revenue, up 24%. Advertising services added $21.32 billion, up 23%, showing the business is still broadening beyond its original retail base. That mix helps explain why Amazon trades at a forward price-to-earnings ratio of 32x and why the company remains valued at about $2.8 trillion.
The key debate now is whether AWS can sustain 20%-plus growth as Amazon spends aggressively to keep pace in AI. Andy Jassy has guided to about $200 billion in capital expenditures in 2026, and free cash flow compressed to $11.19 billion as capex surged. That spending is part of the bet that Amazon can secure more AI workloads, build out the infrastructure behind them and defend its lead against Microsoft Azure and Alphabet Google Cloud.
There is still a real friction point in the story. OpenAI cost-control headlines have raised questions about how quickly AI demand converts into profitable cloud revenue, and Amazon has to prove that customer momentum can outrun the enormous bill for chips, data centers and power. Mizuho’s upgrade says the market is still underestimating that opportunity, but it also leaves Amazon with a simple test: deliver the growth that justifies the spending.
That test arrives soon. Amazon’s first-quarter results are due April 29, and guidance calls for net sales of $173.5 billion to $178.5 billion and operating income of $16.5 billion to $21.5 billion. If AWS keeps pushing higher while AI infrastructure demand broadens, the case for the stock becomes easier to defend. If not, the premium multiple will look less like confidence and more like a promise.
