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LAS VEGAS - Amazon Web Services (AWS) announced AWS AI Factories at its re:Invent conference, offering dedicated AI infrastructure that can be deployed within customers’ existing data centers. This strategic move comes from Amazon.com, Inc. (NASDAQ:AMZN), which boasts a substantial market capitalization of $2.52 trillion and has achieved 11.48% revenue growth over the last twelve months.
The new offering combines NVIDIA accelerated computing platforms, AWS Trainium chips, AWS AI services, and high-speed networking in a managed package that allows organizations to maintain data within their facilities while leveraging AWS technology.
According to the company’s press release, AWS handles the deployment and management of the integrated infrastructure, allowing customers to utilize their existing data center space, network connectivity, and power resources.
The solution aims to help enterprises and public sector organizations address data sovereignty and regulatory requirements while accelerating their AI deployment timelines.
AWS AI Factories represents an extension of the company’s AI capabilities beyond its cloud infrastructure, potentially enabling organizations with strict data residency requirements to develop and deploy AI applications at scale.
Amazon Web Services, a subsidiary of Amazon.com, Inc. (NASDAQ:AMZN), made the announcement as part of its annual re:Invent conference taking place in Las Vegas.
In other recent news, Amazon Web Services (AWS) unveiled three new frontier agents at its AWS re:Invent conference. These include the Kiro autonomous agent, AWS Security Agent, and AWS DevOps Agent, each designed to operate independently in software development and security tasks. This development highlights AWS’s focus on enhancing its AI capabilities. Additionally, Sony Group Corporation is collaborating with AWS to use its AI services for creating the Sony Engagement Platform, aiming to foster deeper emotional connections with fans across its various entertainment sectors.
On the financial front, Amazon.com has seen several adjustments in stock price targets by major firms. Wells Fargo raised its target to $295, citing Amazon’s plans to double AWS capacity by 2027, which they believe could lead to revenue growth. Oppenheimer also increased its target to $305, maintaining an Outperform rating, and noted the potential upside due to AWS’s capacity expansion plans. Meanwhile, Citizens maintained a $300 price target, expressing some skepticism about Amazon’s ability to profitably scale its grocery business despite previous efforts to improve margins. These recent developments underscore the ongoing interest and analysis of Amazon’s growth strategies and market performance.
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