Amazon Eyes $320 as AWS Growth Fuels Bullish Outlook

1 hour ago 1

Vandita Jadeja

Mon, May 4, 2026 astatine 9:08 AM CDT 4 min read

Quick Read

Amazon (AMZN) reported Q1 EPS of $2.78, crushing the $1.73 estimate, with gross astatine $181.5B (up 16.61%), AWS reaccelerating to 28% maturation (its fastest gait successful 15 quarters), and customized chips reaching a $20B tally complaint with triple-digit growth.
24/7 Wall St. has a 12-month terms people of $320.08 (20.76% upside) with a bargain standing astatine 90% confidence.
AWS capableness commitments from OpenAI (2 GW), Anthropic (5 GW), and implicit 1 cardinal NVIDIA GPUs successful 2026 supply multi-year request visibility, but superior strength remains a hazard with Q1 capex up 77% to $44.2B and full-year 2026 capex guided adjacent $200B.
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Amazon delivered a cleanable net report, and our exemplary leans into the strength. Amazon (NASDAQ:AMZN) trades astatine $265.06 aft rising 27.27% implicit the past month, but our proprietary enactment suggests the rally has room.

Our 24/7 Wall St. terms people is $320.08 implicit the adjacent 12 months, implying 20.76% upside. The proposal is bargain with 90% confidence.

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

An infographic titled 'Amazon Stock (NASDAQ: AMZN) 12-Month Price Prediction' by 24/7 Wall St. It shows a existent terms of $265.06, starring to a people terms of $320.08, representing a 20.76% upside, with a 'BUY' proposal and 'HIGH CONFIDENCE (90%)'. The 'How We Got There' conception details a weighted basal of $294.47 derived from Trailing P/E-Based $265.06, Forward P/E-Based $312.52, and Analyst Consensus $283.98 (0.3x weight), multiplied by a 1.087 Adj. Factor. 'Our Adjustments' amusement a Proprietary 247Factor of +8.7%, with circumstantial adjustments similar Sector Momentum +0.056, Earnings Growth +0.015, and Volatility -0.008, positive a 50% Market Cap Dampening. The 'Bull Case' people is $371.56, driven by AWS Growth Reaccelerates (28% YoY), AI Chip Revenue >$20B Run Rate, and Advertising Momentum (>$70B TTM). The 'Bear Case' people is $273.70, influenced by Massive Capex Pressure (>$200B Guided), Rising Long-Term Debt ($119.1B), and AWS Margin Compression (37.7%). The 'Bottom Line' reiterates 'BUY TARGET: $320.08 (+20.76% UPSIDE)' driven by beardown AWS reacceleration, AI infrastructure demand, and advertizing maturation contempt capex headwinds.

24/7 Wall St. Price Target Summary

Metric

Value

Current Price	$265.06
24/7 Wall St. Price Target	$320.08
Upside	20.76%
Recommendation	BUY
Confidence Level	90%

A Cloud Reacceleration That Changes the Math

Amazon shares are up 14.83% twelvemonth to day and 43.73% implicit the past year, adjacent the 52-week precocious of $265.91. The Q1 2026 study connected April 29 was the catalyst. EPS of $2.78 bushed the $1.73 estimate, gross grew 16.61% to $181.519 billion, and AWS reaccelerated to 28% growth, its fastest gait successful 15 quarters.

Advertising crossed $70 cardinal successful trailing twelve-month revenue, customized chips topped a $20 cardinal tally complaint increasing triple digits, and Stores portion maturation deed 15%, the highest since COVID lockdowns ended. The April 21 announcement of an further $25 cardinal Anthropic concern tied to a 5GW compute committedness flipped retail sentiment from bearish to bullish successful astir 2 weeks.

The Case for $371 and Beyond

Bulls person existent runway. The OpenAI committedness of 2 GW of Trainium capableness opening 2027, Anthropic's 5 GW commitment, and implicit 1 cardinal NVIDIA GPUs deploying successful 2026 fastener successful multi-year AWS request visibility.

Analyst sentiment supports this: 65 bargain oregon beardown bargain ratings versus 4 holds and zero sells. Our bull lawsuit points to $371.56 by May 2027, a 40.18% full return, achievable if AWS holds 28%-plus maturation and advertizing sustains 24% momentum.

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