Amazon (AMZN) shares jumped Friday as multiple analysts raised their price targets for the e-commerce giant following third-quarter results that topped expectations.
Wedbush upped its price target to $250 from $225, pointing to Amazon’s surging artificial intelligence (AI) business. On the company’s earnings call, Chief Executive Officer (CEO) Andy Jassy said Amazon’s AI business is growing three times faster than Amazon Web Services (AWS), its cloud computing division, did at the same stage in its development.
Cloud revenue jumped 19% year-over-year to more than $27 billion amid surging demand for AI. In terms of investment, Amazon said it expects to spend $75 billion in capital expenditures this year, the majority of which will go toward technology infrastructure to support AI demand, according to a transcript of the earnings call provided by AlphaSense.
JPMorgan analysts are “comfortable” with the increase in expenditures given Amazon’s “very clear path to AI monetization through AWS,” the firm …