Saad Ullah
After consolidating for months, Amazon is catching analysts' attention again. KeyBanc projects the stock could jump more than 30% in the coming months, fueled by accelerating cloud computing growth, AI integration, and rebounding consumer demand.
Why KeyBanc Is Bullish
According to a report shared by Barchart, the outlook reflects growing confidence in Amazon's position at the center of the AI infrastructure boom.
Amazon Web Services remains the company's powerhouse. After enterprise spending slowed in 2023–2024, AWS is seeing renewed demand driven by corporate adoption of generative AI. Amazon's AI platform Bedrock, combined with its custom chips (Trainium and Inferentia), gives it a major edge as businesses scale their AI workloads. Meanwhile, the advertising business has quietly become a growth monster—ad revenue jumped over 25% year-over-year last quarter, rivaling traditional retail margins in profitability. And Amazon's e-commerce segment is rebounding thanks to its regionalized logistics model that cuts shipping times and costs. With consumer confidence improving and inflation cooling, spending on the platform has picked up momentum heading into the 2025 holiday season.
Amazon's stock has been consolidating between $160 and $170, building a base for a potential breakout. The 200-day moving average has flattened and buying volume is gradually increasing—classic signs of accumulation. If the stock breaks above $175, analysts expect it could rally toward $200–$210, hitting that 30% gain KeyBanc forecasts. This fits the broader NASDAQ 100 trend where mega-cap tech stocks have regained leadership after months of rotation.
The Bigger Picture
The bullish call reflects a market-wide shift. Investors are rotating back into AI-linked growth stocks, especially those with strong balance sheets and diversified revenue streams. Amazon checks every box—consumer-scale data, cloud dominance, and early leadership in applied AI. Institutional money has been pouring into large-cap tech ETFs recently, with Amazon consistently ranking among the top five holdings added by major asset managers.
Amazon's combination of AI-driven growth, cloud infrastructure dominance, and rising advertising profits makes a compelling case. With solid fundamentals, improving sentiment, and KeyBanc's bullish forecast, that 30% upside looks increasingly realistic. If upcoming earnings confirm continued strength in AWS and advertising, Amazon could be headed back toward all-time highs—potentially kicking off its next major bull run.
Saad Ullah
