3M gets Amazon handshake and taste of AI trade
MMM•3M lifted its 2026 profit forecast a day after expanding its data-center partnership with Amazon. Analysts said the agreement could expand 3M’s data-center opportunity, though J.P. Morgan said investors should not view the announcement as making 3M an AI company.
1. Analysts weigh partnership
J.P. Morgan said 3M expanded its commercial relationship with Amazon for data-center components, but investors do not view the company as “in the AI camp,” and “nor should it be.” Morgan Stanley expected the Expanded Beam Optical manufacturing announcement and partnership to be received positively, while anticipating a weaker investor response to the quarter despite strong margins.
2. Revenue opportunity
RBC Capital Markets said the agreement could significantly expand 3M’s data-center revenue opportunity, with spending potentially exceeding the company’s current data-center revenue across all customers. Morningstar said the initiatives strengthen 3M’s competitive moat and provide commercial validation for its optical connectivity technology. LSEG-compiled data showed 21 analysts rated 3M “buy” on average, with a median price target of $190.
