Amazon (AMZN) receives a strategic upgrade from Wells Fargo, shifting from “Equal Weight” to “Overweight” due to confidence in Project Rainier boosting AWS growth. The $2.3 trillion company’s stock performance has been muted, but Rainier’s AI infrastructure bet could change the game. Project Rainier involves constructing an AI supercomputer with Anthropic, projected to generate $14 billion in annual AWS revenue at full capacity. Amazon’s Q2 2025 earnings beat expectations, with net sales of $167.7 billion and operating income of $19.2 billion, driven by growth across key segments. Analysts project EPS of $6.76 for fiscal 2025, with a consensus “Strong Buy” rating on AMZN stock. Wells Fargo and TD Cowen recently raised price targets, emphasizing confidence in AWS growth and new AI tools to boost ad creation. The average analyst price target for AMZN is $266.65, suggesting a potential upside of 22%.

Read more at Yahoo Finance: Why Analysts Think Project Rainier Could Be a Gamechanger for Amazon Stock