Amazon (AMZN) shares advanced about 4% on Friday, buoyed by an upbeat analyst note and fresh investments in renewable energy to support its expanding data-center footprint. The move pushed the stock further into record territory, reflecting renewed optimism about the company's artificial intelligence strategy and its ability to monetize AI across both retail and cloud operations.
Evercore raises target on AI retail potential
Evercore ISI lifted its price target on Amazon to $355 from $315.16, while keeping an Outperform rating. The revised target is based on findings from the firm's 14th annual U.S. online retail survey, which highlighted the growing influence of AI-powered shopping tools. According to the survey, 57% of Alexa AI users said they had purchased a product they were previously unaware of, suggesting that agentic AI could meaningfully boost Amazon's retail business.
The survey also showed Amazon maintaining a 92% penetration rate among U.S. online shoppers, down from last year's record 95% but still 34 percentage points ahead of Walmart. Same-day delivery usage recovered to 49%, and Prime members who used same-day delivery spent 3.1 times more than non-Prime members—the widest gap ever recorded in the survey. Additionally, 46% of respondents who had seen Amazon's Perishable Checkout feature added fresh groceries to their carts.
Evercore set its $355 target using a 30-times multiple on its 2028 earnings estimate and reiterated Amazon as a top large-cap pick.
Expanding power supply for AI data centers
Amazon is also bolstering its electricity supply in Sweden, signing long-term agreements to purchase power from four wind farms developed by Eolus AB and OX2 AB. The projects are expected to add nearly 200 megawatts of capacity, bringing Amazon's total power supply in Sweden to almost 1 gigawatt once fully operational.
The move comes as major tech companies race to secure energy for AI and cloud computing infrastructure. Amazon has previously announced plans to add 1 million Nvidia GPUs to its data-center fleet this year, with another 2 million expected in 2027 and 2028. The company's cloud division, Amazon Web Services (AWS), also recently announced plans to acquire DuckLabs, the Amsterdam-based company behind the open-source analytical database DuckDB, to strengthen its analytics capabilities.
Wall Street remains bullish
Analyst sentiment toward Amazon stays positive, with 22 analysts revising their earnings estimates upward in recent weeks. The consensus price target implies roughly 27% upside from current levels. Citizens maintained a Market Outperform rating, citing Amazon's logistics advantages and AI model growth. Rosenblatt Securities initiated coverage with a Buy rating and a $335 price target, highlighting expected AWS growth.
A recent analysis from Motley Fool argued that Amazon's valuation looks attractive relative to Microsoft when growth is considered, noting that AWS accounts for 60% of Amazon's operating income and that the cloud division's operating income jumped 64% year over year in the second quarter.
Amazon's shares have been on a strong run, recently crossing the $3 trillion market cap milestone. The company's aggressive AI investments and expanding power infrastructure are seen as key drivers of future growth. For more on Amazon's AI momentum, see Morgan Stanley's $500 target and the $3T valuation story.
Investors are also watching how AI demand affects the broader market, as seen in Nvidia's recent gains and the Dow's rally.
This article is for informational purposes only and does not constitute financial advice.
