Bank of America has reaffirmed its buy rating for Amazon stock with a $275 price target, implying roughly 30.6% upside. The bank argues the market is misreading the company’s significant AI-related capital expenditures, asserting that infrastructure capacity is directly monetizable in an AI-driven economy and pointing to strong growth from key partner Anthropic.
Bank of America has reaffirmed its buy rating for Amazon stock, setting a price target of $275. This signals roughly 30.6% upside potential from current levels and is reshaping the Amazon stock forecast across Wall Street.
The bank’s position is that the market is misreading the situation regarding the company’s $200 billion capital expenditure guidance for 2026. BofA argues that infrastructure capacity is directly monetizable in an AI-driven economy.
AWS doubled its power capacity between 2022 and Q3 2025, from roughly 8.0 GW to nearly 15 GW. In 2025 alone, 3.9 GW was added, generating $21.2 billion in incremental sales, or about $5.4 billion per GW.
Management plans to double capacity again by 2027, with BofA modeling AWS hitting 31.4 GW. This could see AWS revenues reach $35 billion in 2026 and $45 billion in 2027, above current Wall Street estimates.
The growth of Anthropic adds fuel to the thesis, as BofA analysts stated “If a significant share of Anthropic’s workloads run on AWS… we see an opportunity for up to a $1 billion quarter-over-quarter increase in Q1 AWS revenues related to Anthropic.” Bloomberg reported that Anthropic’s annualized revenue run rate surpassed $19 billion.
Analysts added “Anthropic’s recent ARR acceleration is a positive proof point for all hyperscalers and could help reduce a recent sector overhang on capex investment uncertainty.” Anthropic is also expected to pay hyperscale cloud providers up to $6.4 billion in 2026 through revenue-sharing agreements.
The broader Amazon stock outlook remains bullish among analysts. The stock trades at a P/E of 30.52 with a market cap of $2.35 trillion, and Wall Street’s price target range runs from $175 to $360.
