Feb. 25 at 5:10 PM
BoA 5-star Analyst (162 out of 12,135 Wall Street Analysts) reiterates Buy Rating on
$AMZN & keeps TP of
$275
Cites: Amazon’s disclosure that “AWS added 3.9 gigawatts in 2025 alone, w/ plans to double capacity again by 2027"
AWS has already doubled its power capacity since 2022, a buildout that helped rev growth accelerate from “+17% y/y in 2Q25 to +24% y/y in 4Q25"
BoA ests show AWS power capacity rising to more than 31 gigawatts by YE27, up from about 15 gigawatts in 3Q25
Based on Amazon’s historical capex data, BofA ests AWS could generate “
$164B in FY26 revs &
$209B in FY27” representing potential +2% and +5% upside to current Street forecasts
Sentiment should improve as AWS rev growth continues, “Trainium adoption increases” & new AI agreements validate Amazon’s lower-cost approach. Any progress in Amazon’s proprietary LLM development would also be constructive for the stock
