Amazon stock buy rating has been reaffirmed by Bank of America, which set its AMZN stock target price at $275 — implying roughly 30.6% upside from current levels. The move is reshaping the Amazon stock forecast across Wall Street, with multiple major banks now signaling strong upside.
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The AI spending scare has weighed heavily on Amazon (AMZN) stock, with investors fixating on the company’s $200 billion capex guidance for 2026. That’s a figure that came in $52 billion above Wall Street’s $148 billion expectations. BofA’s position is that the market is misreading the situation.
The bank argues that infrastructure capacity is directly monetizable in an AI-driven economy. AWS doubled its power capacity between 2022 and Q3 2025, from roughly 8.0 GW to nearly 15 GW. In 2025 alone, 3.9 GW was added, generating $21.2 billion in incremental sales — or about $5.4 billion per GW. Amazon management plans to double capacity again by 2027, and BofA models AWS hitting 31.4 GW by then.
If that holds, AWS revenues could reach $35 billion in 2026 and $45 billion in 2027. That’s well above Wall Street’s estimates of $32 billion and $38 billion.
Bloomberg reported that Anthropic’s annualized revenue run rate surpassed $19 billion, up from $9 billion at the end of 2025, driven by enterprise adoption of its AI models, Claude Code, and the launch of Opus 4.6.
“If a significant share of Anthropic’s workloads run on AWS… we see an opportunity for up to a $1 billion quarter-over-quarter increase in Q1 AWS revenues related to Anthropic.”
“We believe the recent acceleration in Anthropic’s ARR signals strong (and rapidly growing) enterprise demand for AI services.”
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Anthropic is also expected to pay hyperscale cloud providers up to $6.4 billion in 2026 through revenue-sharing agreements, up from $1.9 billion in 2025.
Source: Watcher Guru
