As Demand for AWS’ AI Surges, Citi and JPMorgan Raise Amazon Price Targets

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triple-digit growth.Citi and JPMorgan expect Amazon’s AWS division and $200B in planned 2026 capital expenditures to drive multiple expansion and earnings growth, though trailing twelve-month free cash flow declined 37% year-over-year due to the CapEx surge.Have You read The New Report Shaking Up Retirement Plans? Americans are answering three questions and many are realizing they can retire earlier than expected.Amazon (NASDAQ:AMZN) has pulled back more than 6% this year and is up 2.15% over the past week, sitting around $211.80 but well off its 52-week high of $258.60. The one-year gain stands at a modest 2.96%, with most analysts clustering around the Street consensus target of $280.47. But on March 25, 2026, two of Wall Street's most influential firms moved simultaneously and with conviction.Citi raised its price target to $285 from $265, maintaining a Buy rating. JPMorgan raised its target to $280 from $265, keeping an Overweight rating and naming Amazon its best idea. Both upgrades center on the same thesis: AWS AI demand is accelerating faster than the broader market appreciates. The analyst consensus target of $280.47 across 67 analysts reflects widespread bullishness, but Citi's $285 sits at the top of that range. The question is whether AMZN can reach $285 by the end of 2026.Citi upped its AWS estimates after analyzing revenue contributions from Anthropic, OpenAI, and core workloads, projecting AWS revenue growth of 28% year-over-year in Q1 and 29% for full-year 2026, accelerating to 37% in 2027 as Amazon's Anthropic and OpenAI partnerships ramp. That projection runs well ahead of AWS's already impressive Q4 FY2025 growth of 24% year-over-year, itself the fastest growth in 13 quarters. The re-acceleration trend supports the call: AWS grew 17% in Q1 FY2025, 17% in Q2, 20% in Q3, and 24% in Q4.Have You read The New Report Shaking Up Retirement Plans? Americans are answering three questions and many are realizing they can retire earlier than expected.AWS AI Monetization: JPMorgan projects AWS growth of 29% in Q1, 30% in Q2, 29% in Q3, and 28% in Q4 2026, driven by traditional workloads shifting to cloud and greater AI adoption. This segment represents durable, recurring revenue with expanding margins that have compounded over years.Proprietary AI Infrastructure: Amazon's custom chip business (Trainium and Graviton) carries a combined annual revenue run rate above $10 billion with triple-digit percentage growth year-over-year. Owning the silicon layer reduces AWS cost structure and deepens customer lock-in over time.Advertising Scale: Advertising Services generated $21.32 billion in Q4 FY2025, up 23% year-over-year, a high-margin business that compounds quietly alongside the core retail and cloud operations.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoTrending tickersBTC-USD Bitcoin USD 68,496.79 -2,338.07 (-3.30%)META Meta Platforms, Inc. 547.54 -47.35 (-7.96%)KOD Kodiak Sciences Inc. 39.76 +17.01 (+74.77%)RDDT Reddit, Inc. 127.26 -12.37 (-8.86%)ETH-USD Ethereum USD 2,050.70 -100.88 (-4.69%)PortfolioSign in to access your portfolioSign inTop gainersKOD Kodiak Sciences Inc. 39.76 +17.01 (+74.77%)NAVN Navan, Inc. 13.11 +3.96 (+43.28%)CAR Avis Budget Group, Inc. 139.58 +16.02 (+12.97%)MDGL Madrigal Pharmaceuticals, Inc. 518.76 +56.83 (+12.30%)NEXT NextDecade Corporation 8.15 +0.81 (+11.04%)Top losersVICR Vicor Corporation 157.96 -28.04 (-15.08%)AAOI Applied Optoelectronics, Inc. 97.42 -16.99 (-14.85%)PONY Pony AI Inc. 9.72 -1.67 (-14.66%)KRMN Karman Holdings Inc. 86.01 -13.59 (-13.64%)AXTI AXT, Inc. 58.51 -8.84 (-13.13%)Most activeNVDA NVIDIA Corporation 171.24 -7.44 (-4.16%)MARA MARA Holdings, Inc. 8.58 +0.30 (+3.62%)SNAP Snap Inc. 4.0100 -0.4800 (-10.69%)INTC Intel Corporation 44.10 -3.08 (-6.53%)ONDS Ondas Inc. 9.44 -0.87 (-8.44%)Top economic eventsEarnings eventsMy earnings eventsEarnings events