Amazon’s Cloud Ambitions Fuel Analyst Optimism for Shares

A major Wall Street firm has significantly raised its price target for Amazon, citing a massive expansion in the company’s cloud computing division as a primary catalyst. Oppenheimer now sees the stock reaching $305 within 18 months, implying substantial upside from current levels.

Analyst Forecasts a Surge in Cloud Revenue

On December 1, investment bank Oppenheimer increased its 18-month price objective for Amazon from $290 to $305. This adjustment suggests a potential gain of approximately 30%. Analyst Jason Helfstein points to an aggressive infrastructure push by Amazon Web Services (AWS) as the core driver behind this bullish outlook.

The central thesis hinges on AWS’s plans to double its data center capacity by 2027, following a previous doubling between 2022 and 2025. A key projection from Helfstein is that each additional gigawatt of capacity could generate roughly $3 billion in revenue. AWS is expected to add at least one gigawatt in the fourth quarter of 2025 alone.

The detailed forecasts present a robust picture:
* Projected AWS revenue for 2026: $175 billion (a 36% year-over-year increase)
* This figure notably exceeds the market consensus estimate of $154 billion
* The ratio of capital investments to revenue is anticipated to decline from 77% in 2025 to 56% by 2027

This last point may address investor concerns that Amazon has been overspending on artificial intelligence infrastructure without a clear path to returns.

A Strategic Pivot in Cloud Strategy

Coinciding with the analyst upgrade, announcements at the AWS re:Invent conference in Las Vegas captured market attention. Amazon unveiled “AWS Interconnect,” a new service designed to establish private, direct connections to rival cloud platforms. In a notable shift, Google Cloud was named as the first partner, with Microsoft Azure expected to follow in 2026.

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This move represents a significant change in strategy. After years of attempting to lock customers into proprietary ecosystems, AWS is now positioning itself as a central hub for multi-cloud architectures, acknowledging the complex reality of modern enterprise IT.

The conference also featured several high-profile partnership revelations:
* BlackRock will migrate its Aladdin investment platform to AWS, beginning in mid-2026.
* Visa is collaborating on “Agentic Payments” initiatives.
* S&P Global is integrating its market data into AI workflows on the platform.

Rapid Expansion in Quick Commerce

While cloud developments dominate the narrative, Amazon is also accelerating its quick-commerce business at a remarkable pace. In India, the company is currently launching an average of two new micro-fulfillment centers every day for its “Amazon Now” service. The goal is to have over 300 of these dark stores operational in cities like Bengaluru, Delhi, and Mumbai by the end of 2025, directly challenging local competitors such as Blinkit and Zepto.

Simultaneously, Amazon is testing 30-minute delivery windows in Seattle and Philadelphia. The message is clear: the company aims to establish leadership not only in cloud computing but also in the ultra-fast delivery commerce segment.

Market Sentiment and Technical Outlook

Among the 67 analyst ratings tracked, 48 recommend “Buy” or “Strong Buy” on Amazon shares. The median price target currently stands at $297. The re:Invent conference continues through December 5, with keynotes from AWS CEO Matt Garman and CTO Werner Vogels likely to yield further announcements on generative AI and custom chips.

From a chart perspective, the stock has room to advance toward the $250 level. Whether the fundamental catalysts from the cloud division will be sufficient to sustainably break the prevailing trend will likely become clearer in the coming weeks.