Amazon Price Targets Cut to $304 and $260 Despite AWS 98GW Capacity Forecast
Wells Fargo cut Amazon’s price target from $305 to $304 but retained an Overweight rating projecting over 40% upside, while Oppenheimer reduced its target from $325 to $260 with 20% upside. They forecast AI-driven demand to double hyperscaler capacity to 98GW by 2027 with $860 billion capex.
1. Analyst Price Target Revisions
Wells Fargo trimmed its Amazon price target from $305 to $304 while maintaining an Overweight rating and projecting over 40% upside. Oppenheimer followed by lowering its target from $325 to $260 but upheld an Outperform rating with roughly 20% upside.
2. AI Compute Capacity Forecast
Analysts project that AI-driven demand will double hyperscaler compute capacity to 98GW by 2027, requiring approximately $860 billion in annual capital expenditure. This ramp in compute infrastructure is viewed as a key driver of future AWS revenue growth.
3. AWS Growth Prospects
The anticipated expansion in compute capacity underpins expectations for accelerated AWS market share gains and revenue momentum. Investors are weighing these infrastructure investments against potential margin pressures as capex ramps up.