Could Amazon Really Hit $375 This Year? Here’s Why It’s Possible

Quick Read

• Amazon (AMZN) delivered Q1 results with AWS increasing 28% twelvemonth implicit twelvemonth (fastest successful 15 quarters), a chips concern astatine $20 cardinal yearly tally rate, and EPS of $2.78 beating estimates by 61%, yet shares stay astatine $264.14 contempt fundamentals suggesting higher valuations.

• AWS AI gross is moving astatine implicit $15 cardinal with triple-digit maturation and Anthropic committed implicit $100 cardinal successful spending, positioning Amazon’s infrastructure concern for sustained borderline enlargement arsenic Trainium chips trim information halfway costs.

• The expert who called NVIDIA successful 2010 conscionable named his apical 10 stocks and Amazon wasn't 1 of them. Get them present FREE.

Amazon (NASDAQ:AMZN) conscionable delivered a 4th that should marque each carnivore reconsider. AWS grew 28% twelvemonth implicit year, the fastest gait successful 15 quarters, the chips concern crossed a $20 cardinal yearly tally rate, and EPS came successful astatine $2.78 versus a $1.73 estimate.

Yet shares closed astatine $264.14 connected May 15, good beneath wherever fundamentals suggest they should be. Can Amazon scope $375 a stock successful 2026?

Why Amazon Shares Are Stuck Despite Record AWS Growth

Despite Q1 results that CFO Brian Olsavsky framed astir a 13.1% operating margin, the highest ever, shares person fixed backmost caller gains. Momentum has cooled. The MACD histogram flipped antagonistic connected May 11 and deepened to -2.0243 by May 15, portion RSI dropped from 81.1 connected May 6 to 58.6 successful 9 sessions.

The expert who called NVIDIA successful 2010 conscionable named his apical 10 stocks and Amazon wasn't 1 of them. Get them present FREE.

Two overhangs explicate it. First, Berkshire Hathaway afloat exited its Amazon presumption successful Q1 2026, a header that traveled. Second, escaped currency travel has collapsed nether a $200 cardinal 2026 capex plan, with $43.2 cardinal spent successful Q1 alone. With a beta of 1.468, AMZN amplifies each macro wobble.

Wall Street Sees Modest Upside. I Think They Are Too Conservative

The statement people sits astatine $311.55, with 14 Strong Buys, 48 Buys, 5 Holds, and zero Sells among 67 analysts. That is bullish, but the terms people feels stale. Quarterly EPS maturation ran astatine 74.8% twelvemonth implicit twelvemonth and gross astatine 16.6%. Yet statement implies little than 18% upside from here.

The Street appears anchored to aged maturation assumptions earlier AWS reaccelerated and earlier the chips concern deed a $50 cardinal implied standalone tally rate. With $364 cardinal successful AWS backlog and Trainium astir afloat subscribed done Trainium3, the operating leverage communicative has years left.

The Path to $375 Per Share

Reaching $375 from today's terms of $264.14 requires a summation of 42%. With guardant EPS of astir $8.22 (derived from the 32 guardant P/E), a terms of $375 implies a guardant P/E of 46x. The statement people of $311.55 implies astir 38x, meaning the bold people requires astir 7.7x of further aggregate expansion. Can Amazon gain that? Yes, if 3 things support working: