Shares in Amazon (AMZN) stock are up over 9% this week as the company added over $300 billion in market value. With earnings results last week showing the fastest quarterly growth for Amazon Web Services since 2022, followed by a $38 billion cloud deal with OpenAI, investor hype behind AMZN is surging. The climb led the stock to a new ATH earlier this week, although the stock has corrected amid the ongoing tech stock slump.
The recent decline in AI stocks has raised questions about the sustainability of the sector, yet Amazon’s investments in AI continue to position it favorably. While 12% compared to other big tech like Nvidia and Microsoft is smaller, Amazon has seen steady growth this year on its stock price chart. Since April 2025’s US tariff scare, AMZN stock has been on a consistently green path. Its AI investments and recent partnerships have driven positive momentum, most notably its OpenAI deal.
Amazon (AMZN) Web Services (AWS) and OpenAI have announced a multi-year, strategic partnership that provides AWS’s world-class infrastructure to run and scale OpenAI’s core AI workloads. AWS will provide OpenAI with Amazon EC2 UltraServers, featuring hundreds of thousands of chips, and the ability to scale to tens of millions of CPUs for its advanced generative AI workloads. OpenAI will also have access to AWS compute, comprising hundreds of thousands of state-of-the-art NVIDIA GPUs. Stock responded positively, climbing over 2% after the announcement this week.
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Despite just a 12% increase YTD, AMZN stock is arguably one of the best value magnificent-seven stocks on the market, due to its consistent investments in the AI industry and ROI for those investments. Should the e-commerce giant continue to post solid revenue in the next few years, a $1,000 investment now could reap upwards of 30-50% back in the future, per numerous price forecasts. Amazon shares could nearly double if its earnings multiple returns to levels from a few years ago, according to Evercore ISI analyst Mark Mahaney.
“With materially increasing odds that AWS has recovered to becoming a sustainably 20%+ revenue growth segment, the stock opportunity ahead is for a material AMZN re-rating,” he wrote in a research note on November 3. Analysts at CNN have also set their median 12-month forecast for the stock higher at $293.50, a 20% jump from current prices. Alternatively, the stock could boom even higher, with CNN’s high forecast projecting a 39% rally to $340.
