Citizens reiterated a buy recommendation on Amazon.com Inc. shares on Monday, citing sustained growth in artificial intelligence infrastructure and cloud services as primary catalysts for the upgraded outlook.
The brokerage maintained a price target of $315 per share on Amazon, equivalent to a Market Outperform rating based on 2027 earnings estimates. The firm’s valuation compares with a $335 target set by Rosenblatt Securities, which also assigned a Buy rating to the stock. Amazon’s market capitalization stood at $2.79 trillion as of Friday’s close, while its PEG ratio was reported at 0.23.
The renewed optimism follows a report in the Wall Street Journal highlighting accelerating revenue growth at major AI developers. OpenAI’s quarterly revenue rose 18% to $6.7 billion, while Anthropic more than doubled its revenue to $11.6 billion in the same period. Analysts at Citizens noted that the expansion of frontier AI models is supporting sustained demand for cloud computing capacity, particularly for training and inference workloads on platforms such as Amazon Web Services (AWS) and Google Cloud Platform.
AWS is projected to close 2026 with a growth rate of 45%, according to Rosenblatt Securities, exceeding the broader market consensus of 38%. The brokerage’s outlook reflects accelerating adoption of AI-driven workloads, which are increasingly migrating to hyperscale cloud environments.
Amazon also announced an $18 billion expansion of its data center operations in northwest Louisiana, including the addition of a third campus in Shreveport. The investment is expected to generate up to 750 full-time jobs and support an additional 2,500 positions in the local economy. The project underscores the company’s commitment to scaling AI infrastructure amid rising demand for computational resources.
Citizens’ recommendation aligns with broader industry trends, as major cloud providers benefit from sustained investment in AI model development. The firm’s analysis emphasizes the structural tailwinds supporting long-term growth in cloud and AI-related services, despite near-term valuation considerations.
