Amazon (AMZN) is one of the top choices for stock investors looking to cash in on the ongoing AI wave. Its investments in AI cloud technology make it a premier option amongst the Magnificent-7 stocks. The company is also one of the founders of the cloud computing industry, with AWS being established in 2006.
Today, the company holds about a 31% market share in the cloud computing space and AWS is the company’s largest business by profitability. As AI continues to climb in profit and popularity, Amazon’s AWS will remain a steady income stream in 2025. Thus, Amazon could grow its market share in cloud computing, and boost its stock value on the 2025 market.
Could Amazon (AMZN) Stock Reach $300 Thanks to AI Cloud Investing?
AWS has also been Amazon’s fastest-growing business, with revenue growth of 19% last quarter to $27.5 billion. Meanwhile, the segment’s operating income soared nearly 49% to $10.4 billion. It noted that AI-related revenue soared by triple-digit percentages.
Amazon stock has spiked nearly 43% in a year and is projected to soar further in the charts. 48 Wall Street strategists have given a ‘buy’ target for AMZN, while one analyst has given it a ‘hold’ call, according to TipRanks. Wall Street analysts remain bullish on Amazon’s prospects in 2025, projecting a high of $290, just short of $300.
An investment of $1,000 could turn into $1,340 in the next 12 months if the forecast turns out to be accurate. The prediction also estimates that Amazon stock could trade at an average price of $250 this year. That’s an approximate surge of 13% from its current price.
Also Read: Amazon Stock: Wall Street Predicts How High AMZN Will Rise in 2025
Amazon’s Trainium2 chip is expected to reduce capacity by 40%. Its presence should provide a more affordable option for the scaling of generative AI products. Conversely, its Bedrock platform is set to offer new tools that will automate coding, data integration, and more.
These avenues will only increase these use cases for AI in the coming year. Moreover, they will shift the sentiment of Amazon as a key player in the growing space. Although completion is immense, its advancements should stand alongside anything that major corporations are doing in the space in 2025.