Amazon Shares Rally 3% on $138B OpenAI AWS Deal and 35% AI Revenue Jump
Amazon shares rose 3% after Barclays maintained its overweight rating and $300 price target. The firm cited a multibillion-dollar OpenAI deal driving $138 billion in AWS spending over eight years, a backlog above $350 billion, 35% annual revenue growth from an Anthropic partnership, and 34% forecasted AWS segment growth.
1. Stock Reaction
Amazon shares climbed about 3% following Barclays’ decision to maintain its overweight rating and $300 price target, reflecting renewed investor confidence in the company’s cloud and AI strategy.
2. OpenAI AWS Agreement
Barclays highlighted a multibillion-dollar agreement with OpenAI that is expected to channel $138 billion into AWS infrastructure over the next seven to eight years, boosting Amazon’s cloud spending commitments.
3. Anthropic Partnership Momentum
Amazon’s partnership with AI lab Anthropic delivered a roughly 35% increase in annual recurring revenue during Q1 2026, driven by the launch of new AI tools and services.
4. Barclays Forecast and Outlook
Barclays raised its 2027 AWS revenue estimate by 5%, forecasting 34% segment growth in Q3, and noted that CEO Andy Jassy’s $600 billion revenue target for 2036 could be conservative given accelerating agentic AI adoption.