Amazon stock holds Buy rating at TD Cowen amid AWS acceleration

Investing.com - TD Cowen has reiterated a Buy rating and $300.00 price target on Amazon.com (NASDAQ:AMZN), citing accelerating Amazon Web Services (AWS) revenue and growing backlog. This target represents a 33% upside from the current price of $226.28, aligning with the broader analyst sentiment as InvestingPro data shows 34 analysts have recently revised their earnings expectations upward for the upcoming period.

AWS revenue accelerated to 20.2% year-over-year growth in the third quarter of 2025, up from 17.5% in the second quarter, according to the research firm. Management reported a $200 billion backlog, representing 22% year-over-year growth, which doesn’t include several unannounced October deals that reportedly outpaced total third-quarter deal volume. This growth contributes to Amazon’s overall revenue of $691.33 billion for the last twelve months, with the company achieving 11.48% revenue growth during this period.

On November 3, Amazon announced a multi-year strategic partnership with OpenAI that includes a $38 billion commitment for OpenAI to use AWS compute resources, including "hundreds of thousands" of Nvidia GPUs with potential to scale to "tens of millions" of CPUs for agentic workloads.

TD Cowen noted that AWS’s Trainium chips business has reached a multi-billion dollar run rate and grew more than 150% quarter-over-quarter in the third quarter of 2025.

The firm projects AWS revenue will reach $128.1 billion in 2025, up 19.1% year-over-year, growing to $348.5 billion by 2030, representing a 22% compound annual growth rate over the five-year period, while AWS operating income is forecast to rise to $45.9 billion in 2025 and $117.8 billion in 2030. With a PEG ratio of 0.62, Amazon is trading at a low P/E ratio relative to its near-term earnings growth, despite its current P/E of 32.02. InvestingPro analysis indicates Amazon is currently trading near its Fair Value, with comprehensive financial health scores and detailed metrics available in the Pro Research Report, part of the in-depth analysis available for over 1,400 US equities.

In other recent news, Amazon.com has completed a significant financial maneuver by closing a $15 billion multi-tranche bond offering. This transaction involved the sale of senior unsecured notes, with various tranches maturing between 2028 and 2065. Additionally, Amazon Web Services (AWS) and HUMAIN have announced plans to deploy up to 150,000 AI accelerators in Riyadh, Saudi Arabia, as part of a broader investment in AI infrastructure. Analyst firms have also been active, with BMO Capital reaffirming an Outperform rating for Amazon, maintaining a $300 price target, while BNP Paribas Exane initiated coverage with an Outperform rating and a $320 price target. These ratings suggest a positive outlook on Amazon’s leadership in cloud computing and e-commerce, along with potential growth in advertising. BofA Securities has highlighted the "OpenAI dilemma," noting Amazon’s significant cloud agreements, including a $38 billion deal with OpenAI. These developments showcase Amazon’s ongoing strategic moves in finance, technology, and international partnerships.

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