The Market Is Underestimating What AI Could Mean for This Company

Amazon is facing skepticism from parts of the market about what AI could mean for its business, but a bullish view argues the impact could be larger than investors expect. The article cites a 12-month price target from 24/7 Wall St. of $329.19 for Amazon (AMZN), about 30.49% above a reference price of $252.29. It highlights AWS growth, with backlog reaching $496 billion, and notes AI and chips each surpassing $25 billion in annualized revenue. Second-quarter revenue rose 19.62% to $200.61 billion, beating estimates, and GAAP EPS was $5.75 including a $53.40 billion gain tied to an Anthropic stake. The bull case centers on Trainium: OpenAI plans about 2 GW starting in 2027, and Anthropic up to 5 GW.