Analysts on Wall Street are giving Amazon (AMZN) stock a forecast upgrade, even as the e-commerce giant’s shares are down 5% this week. Investors had expected a more significant jump in the stock due to Amazon’s substantial investments in artificial intelligence; however, the past month has been sluggish. Following its cloud market and Anthropic contribution analysis, though, analysts at Wells Fargo have upgraded AMZN shares to Overweight from Equal Weight. Thus, now could be a strong buy-the-dip opportunity.

“While share losses remain material, we take solace in stronger industry growth and rising AWS estimates,” wrote Wells Fargo’s Ken Gawrelski. Most on Wall Street agree with Wells Fargo’s assessment. Of the 71 analysts polled by FactSet, 68 rate Amazon stock a Buy or equivalent, with an average price target of $264.

Analysts such as Pivotal Research and Cantor Fitzgerald also have confidence in AMZN, with price targets of $260 and $280, respectively, indicating potential upside. Wedbush and Roth MKM also maintain optimistic ratings with targets of $250. Analysts like Rosenblatt are more aggressive with a target of $297 for the stock.

Also Read: Amazon: Cramer Bullish, AMZN Joins Morgan Stanley Vintage List

Amazon’s recent dip comes amid fears of the company failing to meet the lofty expectations it set for itself. Amazon plans to spend up to $100 billion on AI this year. With guidance for the current quarter of $15.5 billion to $20.5 billion in operating income, the midpoint is less than Wall Street’s estimate of $19.5 billion. There’s a growing concern that AI investments may not be paying off for companies, and Amazon has been one of the biggest spenders in the US on the surging industry.

At press time, Amazon AMZN is trading near the top of its 52-week range and above its 200-day simple moving average.