Artificial intelligence (AI) stocks are driving significant growth on Wall Street, with Google increasing its 2025 capital expenditure target to $85 billion for AI servers and data centers. Amazon is well-positioned to benefit, with its large U.S. presence and leadership in AI-driven cloud services through AWS. Amazon’s market cap is $2.46 trillion, with shares up 6.1% year-to-date. Despite an elevated valuation, Amazon remains cheaper than its sector median, with a trailing PEG ratio of 0.52x. Amazon Web Services (AWS) is crucial to the company’s AI strategy, offering a complete AI stack including custom processors and managed AI services like Amazon Bedrock and Amazon Nova. Amazon will report Q2 2025 results on July 31, with analysts expecting revenue of around $162 billion and EPS of $1.33. The company’s guidance calls for operating income between $13 billion and $17.5 billion, driven by growth in the AWS and Ads segments. Wall Street analysts have a “Strong Buy” consensus on Amazon, with an average 12-month price target of $254.38, suggesting a 10% upside. Notable calls from Morgan Stanley, Baird, and Bank of America highlight the potential for growth in AWS and generative AI. Nauman Khan did not hold any positions in the securities mentioned in the article, which was originally published on Barchart.com.

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