Wall Street Analysts Identify a Compelling Entry Point for Amazon Shares

While the broader market has advanced in 2025, Amazon's stock has moved in the opposite direction, declining by more than 8% since the start of the year. However, the prevailing sentiment among major financial institutions is not one of pessimism. Following the company's pivotal AWS re:Invent conference in Las Vegas, several leading investment banks have reaffirmed their bullish stance, pointing to the firm's artificial intelligence roadmap as a source of significant latent value.

A primary concern among investors has been that Amazon might be lagging in the critical race to build AI infrastructure. The company addressed these worries head-on at its recent event with the introduction of its next-generation "Trainium3" chip. AWS CEO Matt Garman unveiled the processor as a major technological leap, claiming it delivers four times the computing power and energy efficiency of its predecessor.

This hardware push, which also included new "Nova" AI models and more cost-efficient server architectures, is strategically designed to achieve two goals: reduce reliance on external chip suppliers and enhance profitability margins within the lucrative cloud computing segment.

Solid Backing from Financial Analysts

Despite the stock's weak performance this year, analysts from TD Cowen, Goldman Sachs, and KeyBanc emerged from the AWS showcase with reinforced confidence. Their continued optimism is rooted in the long-term growth trajectory they foresee for Amazon's cloud division.

Research from TD Cowen projects that AWS could achieve annual revenue growth of 22% through 2030. Furthermore, the division's operating income is forecast to more than double, climbing from approximately $46 billion in 2025 to nearly $118 billion by 2030. These projections support the argument that the current share price weakness may represent a buying opportunity rather than a fundamental red flag.

Should investors sell immediately? Or is it worth buying Amazon?

Examining the Sources of Recent Pressure

Even with these positive developments, Amazon shares currently trade around €197, a level substantially below their 52-week high of over €233. Market observers attribute this underperformance to a confluence of three key factors:

• Apprehension regarding potential delays in scaling AI infrastructure.
• Concerns about margin compression from possible new tariff implementations.
• Fierce competitive dynamics within the cloud industry.

Many portfolio managers, however, are looking ahead to 2026. The expectation is that the company's heavy investments in AI will begin to materially impact financial results by then, driving a recovery in operating margins.

Additional Catalysts on the Horizon

Beyond its core operations, other potential drivers for the stock exist. Reports indicate that AI startup Anthropic, in which Amazon holds a substantial $8 billion stake, is considering an initial public offering (IPO) in early 2026. A successful public debut would not only provide a financial windfall but also validate the strategic partnership, as Anthropic utilizes AWS as its primary cloud provider.

In the near term, the ongoing holiday shopping season offers support. Robust sales figures between Black Friday and Cyber Monday suggest a resilient consumer environment, a trend from which Amazon's high-margin advertising business is poised to benefit. The crucial test in the coming year will be whether management can demonstrate that its massive expenditures on proprietary chips and data centers are indeed boosting profitability as promised.