TLDR
- Amazon stock rose about 4% after Evercore ISI analyst Mark Mahaney raised his price target to $355, up from $315
- Mahaney cited strong survey data showing 92% U.S. shopper penetration and growing AI-driven retail demand
- AWS plans to add 2 million Nvidia GPUs in 2027-2028, reinforcing cloud and AI demand signals
- Wall Street holds a Strong Buy consensus on AMZN with an average price target of $334
- Amazon reported Q2 EPS of $5.75, beating estimates of $1.82, with revenue up 19.6% year over year
Amazon (AMZN) stock climbed roughly 4% on Friday, opening at $266.43, after Evercore ISI analyst Mark Mahaney raised his price target to $355 from $315 and kept his Buy rating in place.
Mahaney, who ranks 423rd among more than 12,500 analysts tracked by TipRanks, has an 84% success rate on AMZN with an average return of 21.81% per rating over a one-year period. That track record gives his calls some weight.
The upgrade was backed by Evercore’s latest U.S. Online Retail survey, which pointed to several solid trends for Amazon’s retail business.
Amazon’s shopper penetration in the U.S. stands at 92%, well ahead of Walmart. Customer satisfaction sits at 76%, and around 60% of Prime members said they would renew even if the annual fee went up by $20.
Agentic AI is also starting to move product. The survey found that 57% of Alexa AI users bought items they had not previously searched for, suggesting AI is creating new demand rather than just redirecting existing intent.
Delivery Speed and Prime Spending Gap
Shipping metrics also improved. Regular same-day delivery usage rebounded to 49%, and Prime members who use same-day now spend 3.1 times more than non-Prime users, the widest gap Mahaney said he has seen.
Amazon’s Perishable Checkout tool is adding grocery momentum, with nearly half of users who see it adding fresh items to their cart.
On the hardware and infrastructure side, AWS is expanding fast. Amazon plans to add 2 million high-end Nvidia GPUs, including Blackwell Ultra and Rubin chips, across 2027 and 2028. That brings its total announced chip commitment to around 3 million units.
Investors read the GPU buildout as a direct signal that AI workload demand on AWS is holding strong and that Amazon is willing to spend to meet it.
Strong Q2 Results Still in Focus
Amazon’s most recent earnings, reported July 30, added to the positive backdrop. The company posted Q2 EPS of $5.75 against a consensus estimate of $1.82, a beat of $3.93 per share. Revenue came in at $200.61 billion, ahead of the $197.03 billion estimate and up 19.6% from the same quarter last year.
AWS revenue grew approximately 37% to $42.2 billion in Q2, and Amazon’s AI and chip businesses each hit annualized revenue run rates above $25 billion.
On the institutional side, Athena Wealth Management boosted its AMZN position by 47% during Q2. Several other firms also added to existing positions during the period.
Wall Street’s overall view stays firmly positive. Based on 39 Buy and one Hold recommendation from the past three months, the consensus is Strong Buy. The average price target of $334.05 implies about 25% upside from current levels.
Mahaney’s new $355 target sits above that average, representing 33% upside from the stock’s opening price on Friday.
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