Since then, no follow through has been seen, though, with the Amazon share price range trading in the $250.00 region as investors digest the implications.
AWS remains the company’s most critical engine of profitability and growth, and its renewed momentum helped to ease concerns about competitive positioning.
Diversified growth across business segments
Advertising, third-party seller services and international market expansion added to the diversified growth profile, suggesting a broader recovery across Amazon’s ecosystem beyond just cloud services.
Analysts highlighted that cloud growth above 20% for a segment of AWS’s scale is a meaningful signal that demand for AI-related workloads and advanced compute services continues to intensify.
Strategically, Amazon used the quarter to highlight the scale and breadth of its AI ambitions across both infrastructure and consumer applications.
The company confirmed that its Trainium2 AI chips were fully reserved and saw 150% quarter-over-quarter (QoQ) growth, demonstrating strong customer adoption.
AI investments span infrastructure and applications
Amazon launched Project Rainier with nearly half a million Trainium2 chips, introduced new EC2 instances built on Nvidia’s Grace Blackwell architecture and expanded power-capacity availability.
Alongside this infrastructure investment, consumer-facing AI tools such as the Rufus shopping assistant and generative AI listing tools for sellers began rolling out in more markets.
Amazon also continued to broaden its media and entertainment offering, with higher engagement on Thursday Night Football, new global NBA coverage and expanded cloud-gaming options via Luna.
These initiatives demonstrate Amazon’s multi-pronged approach to AI, spanning both enterprise infrastructure and consumer applications.
Re-rating potential depends on execution
Amazon’s valuation narrative hinges on its ability to execute during an investment-intensive period. Amazon appears poised for a re-rating, provided that AWS growth accelerates into the low-20% range or better.
Advertising remains strong with growth above 20% and the company’s substantial investments in AI and infrastructure begin translating into operating efficiency and margin expansion.
If all goes well, fundamental analysts believe the stock could reasonably trade towards the $280.00–$300.00 range or higher over the next 12-18 months.
Yet the trajectory is far from guaranteed given the sheer magnitude of spending and elevated execution risk.
According to LSEG Data & Analytics 19 analysts have a ‘strong buy’, 50 a ‘buy’ and 3 a ‘hold’ recommendation with a mean long-term price target at $288.62, up 18% from current levels (as of 14/11/2025).