Goldman Sachs expects Nvidia ’beat and raise,’ lifts price target to $240
Investing.com - UBS raised its price target on Amazon.com (NASDAQ:AMZN) to $310.00 from $279.00 on Friday, while maintaining a Buy rating on the e-commerce and cloud computing giant. This new target represents a 25% upside from Amazon’s current price of $247.12, with the stock already trading near its 52-week high and having gained over 20% in the past six months.
The price target increase follows Amazon Web Services (AWS) reporting accelerated growth of 20% year-over-year during the third quarter of 2025, which UBS called "the loudest signal yet" of returns from Amazon’s heavy investments. This growth has contributed to Amazon’s strong financial health, which InvestingPro rates as "GREAT" with an overall score of 3.2 out of 5.
UBS noted that Amazon’s Performance Obligations increased modestly from $195 billion in the second quarter to approximately $200 billion in the third quarter, but highlighted that October deal wins matched the entire third quarter, positioning Amazon to end the fourth quarter with over $240 billion in backlog.
The firm pointed to Amazon’s disclosure that Anthropic is training its Claude AI model on 500,000 to 1 million Trainium2 chips by year-end, with strong demand for Trainium3, which UBS believes counters narratives questioning the fitness of Amazon’s application-specific integrated circuits (ASICs).
UBS also mentioned that Amazon’s access to NVIDIA’s Grace Blackwell chips within AWS’s new UltraServers should dispel concerns about the company’s GPU availability, with the analyst stating "the coiled spring has sprung" regarding Amazon’s investment returns. With a market cap of $2.62 trillion and a P/E ratio of 37.69, Amazon continues to generate strong results, posting $670 billion in revenue over the last twelve months. InvestingPro analysis reveals 11 additional investment tips for Amazon and comprehensive metrics in its Pro Research Report, available for subscribers seeking deeper insights into this prominent player in the Broadline Retail industry.
In other recent news, Amazon.com has reported third-quarter results that exceeded analysts’ expectations, with revenue 1% above consensus estimates. The company’s earnings before interest and taxes (EBIT), excluding FTC and severance costs, were 9% higher than anticipated. This strong performance has led several analyst firms to raise their price targets for Amazon. Cantor Fitzgerald increased its target to $315, highlighting Amazon’s optimistic fourth-quarter guidance. Truist Securities raised its target to $290, citing the impressive growth of Amazon Web Services (AWS) as a standout factor. DA Davidson and TD Cowen both adjusted their targets to $300, emphasizing the reacceleration in AWS and outperformance in various segments. Piper Sandler also raised its price target to $300, noting the results were better than expected despite negative buyside sentiment. These developments reflect a positive outlook from analysts following Amazon’s robust quarterly performance.
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