​Since then, no follow-through has been seen, with Amazon’s stock price range trading in the region of $250.00 as investors digest the implications.
​AWS remains the company’s most important driver of profitability and growth, and its renewed momentum helped alleviate concerns about competitive positioning.
Diversified growth in all business segments
Advertising, third-party seller services and international market expansion added to the diversified growth profile, suggesting a broader recovery across Amazon’s ecosystem beyond cloud services.
​Analysts highlighted that cloud growth above 20% for a segment the scale of AWS is a significant sign that demand for AI-related workloads and advanced computing services continues to intensify.
Strategically, Amazon used the quarter to highlight the scale and breadth of its AI ambitions in both infrastructure and consumer applications.
​The company confirmed that its Trainium2 AI chips were fully booked and experienced 150% quarter-on-quarter (QoQ) growth, demonstrating strong customer adoption.
AI investments span infrastructure and applications
​Amazon launched Project Rainier with nearly half a million Trainium2 chips, introduced new EC2 instances based on Nvidia’s Grace Blackwell architecture, and expanded power capacity availability.
​Along with this infrastructure investment, consumer-facing AI tools, such as the Rufus shopping assistant and generative AI listing tools for sellers, began to roll out in more markets.
​Amazon also continued to expand its media and entertainment offerings, with increased participation in Thursday Night Football, new global NBA coverage, and expanded cloud gaming options through Luna.
These initiatives demonstrate Amazon’s multi-pronged approach to AI, spanning both enterprise infrastructure and consumer applications.
Requalification potential depends on execution
​Amazon’s valuation narrative depends on its ability to execute over a period of intensive investment. Amazon appears poised for a rerating, provided AWS growth accelerates into the low 20% range or higher.
Advertising remains strong with growth of over 20% and the company’s significant investments in artificial intelligence and infrastructure are beginning to translate into operational efficiencies and margin expansion.
If all goes well, fundamental analysts believe the stock could reasonably trade toward the $280.00 to $300.00 range or higher over the next 12 to 18 months.
However, the trajectory is far from guaranteed given the magnitude of the expenditure and the high risk of execution.
​According to LSEG Data & Analytics, 19 analysts have a “strong buy” recommendation, 50 a “buy” and 3 a “hold”, with an average long-term price target of $288.62, 18% higher than current levels (as of 11/14/2025).
