Amazon Joins $700 B AI CapEx Wave as RSI Falls Below 30
Amazon’s RSI dipped below 30 following a roughly 20% slide from its November peak, replicating oversold conditions that preceded two 60% rallies in April 2025 and summer 2024. The company is also part of a $700 billion AI infrastructure capex wave alongside Google, with analysts keeping price targets above $300 on sustained AWS growth.
1. Oversold RSI Pattern Repeats
Amazon shares have fallen roughly 20% from their November high, pushing the relative strength index below 30. Similar dips into oversold territory in April 2025 and summer 2024 preceded rallies of around 60%, suggesting technical support for a rebound.
2. Participation in $700 B AI CapEx Surge
Amazon is joining Google and others in allocating part of a $700 billion investment surge into AI infrastructure over coming years. Elevated capital spending reflects AWS’s role in underpinning growth, but also raises near-term expenditure forecasts.
3. Analyst Outlook and Fundamentals
Despite higher capex and a recent earnings shortfall, analysts maintain price targets above $300, citing steady AWS revenue growth and operational resilience. The company’s fundamentals remain intact even as increased spending weighs on margins.