Amazon’s shares advanced 3.6% to $265.60 in afternoon trading on Tuesday, extending gains after the company announced a major expansion of its artificial intelligence infrastructure partnership with Nvidia.
The rally followed an agreement to deploy more than 2 million additional high-performance Nvidia GPUs across Amazon Web Services’ global data centers between 2027 and 2028. The new commitment includes models such as Blackwell Ultra, Rubin, and Rubin Ultra, bringing Amazon’s total committed GPU count to over 3 million units. This triples the prior commitment of 1 million GPUs announced just five months ago. The announcement coincided with Nvidia’s quarterly earnings, which showed revenue more than doubling year-over-year.
The move underscores accelerating demand for AI compute capacity, with AWS reporting Q2 revenue growth of 37% year-over-year—the fastest pace since 2021. AWS’s contracted backlog now stands at $496 billion, reflecting robust long-term demand for cloud services.
Analysts responded by lifting their price targets on Amazon. Andrew Boone raised his outlook to $315, citing surging AI demand from anchor customers OpenAI and Anthropic. Mark Mahaney of Evercore ISI increased his target to $355 from $315, forecasting a rebound to new all-time highs within 12 months. The broader Wall Street consensus maintains Buy ratings with an average price target near $320.
The broader market showed mixed performance, with the S&P 500 down 0.3%, the Dow essentially flat, and the Nasdaq declining 0.5%. Amazon’s shares have gained roughly 35% year-to-date, recovering from a 52-week low of $196.
