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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Amazon Stock Forecast As BofA Target Price Signals Upside

BofA Makes its Case on Amazon Stock Buy Rating

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.

Anthropic’s Growth Adds Fuel to the Amazon Stock BofA Thesis

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.

BofA analysts stated:

“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.”

BofA analysts also wrote:

“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.

BofA analysts added:

“Anthropic’s recent ARR acceleration is a positive proof point for all hyperscalers and could help reduce a recent sector overhang on capex investment uncertainty.”

Where the Amazon Stock Buy or Sell Debate Stands Across Wall Street

The Amazon stock buy or sell picture is broadly bullish. Amazon trades at a P/E of 30.52 with a market cap of $2.35 trillion. The AMZN stock target price range across analysts runs from $175 to $360, per InvestingPro data, with the Amazon stock BofA thesis well-supported across the Street.