This week, Nvidia’s stock price surged due to high optimism about artificial intelligence (AI). This surge is spreading to other stocks, such as Advanced Micro Devices (AMD) and Taiwan Semiconductor (TSM). Although Amazon (AMZN) has yet to really benefit from AI developments, analysts predict that this could very well change soon.
Mark Mahaney of Evercore ISI wrote in a note on Thursday that Amazon is currently trading at a low earnings multiple but its margins and growth could start increasing substantially in the second half of the year. This is thanks to the increasing demand for AI, which is demonstrated in Nvidia’s outlook, and Amazon Web Services’ ability to offer customers additional computing power. Evercore has set the price target for AMZN stock at $150 and has an Outperform rating on it.
Amazon is a leading online retailer and cloud computing giant. It provides top-tier cloud services to companies and government clients, and its cloud computing resources form the basis of many of the most popular AI applications. Therefore, Amazon stands to benefit tremendously once AI technology and applications begin to take off.
Mark Mahaney, the analyst from Evercore ISI, is an investment research professional. He currently serves as the company’s Chief U.S. Internet Research Analyst and is responsible for producing investment research on the global Internet and technology industry. Mahaney is well-known for being particularly knowledgeable about Amazon and has achieved success in advising firms on their investments in the company.
