Trump announces 100% chip tariff as Apple ups U.S. investment
Investing.com - BofA Securities has reiterated its Buy rating and $272.00 price target on Amazon.com (NASDAQ:AMZN) following OpenAI’s announcement of new open weight models. The e-commerce giant, currently valued at $2.3 trillion, enjoys strong analyst support, with InvestingPro data showing 19 analysts recently revising earnings estimates upward and price targets ranging from $209 to $306.
OpenAI revealed its new gpt-oss-120b and gpt-oss-20b models, which will be the first OpenAI models available on Amazon Web Services through Amazon Bedrock and Amazon SageMaker AI platforms.
Customers will be able to leverage Amazon SageMaker for pre-training, evaluation, and deployment of these models, while also utilizing Amazon Guardrails for security features.
BofA Securities analyst Justin Post noted that while these open weight models may not represent OpenAI’s "leading edge" capabilities, they align well with Amazon’s cost savings strategy, with gpt-oss-120b reportedly being 3x more price-performant than Gemini, 5x more than DeepSeek-R1, and 2x better than OpenAI’s own o4 model.
AWS Director of Product Atul (NSE:ATLP) Deo emphasized that "the unmatched size of our customer base marks a transformative shift in access to OpenAI’s advanced technology," while OpenAI product lead Dmitry Pimenov stated, "Together with AWS, we’re providing powerful, flexible tools that make it easier than ever for customers to build, innovate, and scale."
In other recent news, Amazon.com reported strong second-quarter earnings, with net sales reaching $167.7 billion, a 13.3% increase compared to the previous year. This result exceeded analyst expectations of $162.2 billion by 3.4%. Operating income also saw a significant rise of 30.6% year-over-year, totaling $19.2 billion and surpassing the consensus forecast of $17.0 billion by 12.9%. HSBC has reiterated its Buy rating on Amazon stock, maintaining a price target of $256.00 following these robust earnings. Additionally, Amazon Web Services launched the Amazon Elastic (NYSE:ESTC) VMware Service, enabling customers to run VMware workloads on AWS without re-platforming. This new service allows organizations to manage their virtualization environment using familiar VMware tools. In other developments, JMP Securities reiterated its Market Outperform rating for Amazon, with a $285.00 price target, citing improved advertising efficiency during the Prime Day event. Average revenue per advertiser reportedly grew 20% year-over-year during this shopping event, highlighting the effectiveness of Amazon’s advertising strategies.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.