Amazon.com, Inc. (NASDAQ:AMZN) is one of the 10 Buzzing AI Stocks on Wall Street Right Now. On July 1, Bernstein raised the firm’s price target on the stock to $235 from $230 and kept an “Outperform” rating on the shares. The modest price target raise follows firm expectations that constraints facing the stock will begin easing throughout the year.
As per the firm, AWS growth has decelerated sequentially in Q1 to +17% year-over-year. Meanwhile, AI contribution continued to expand at a triple-digit pace year-over-year from a relatively smaller base vs Azure.
The company continues to face supply constrained on chips, motherboards, and other components, similar to their CSP counterparts. This is why, despite strong demand indications, there is a near-term cap on topline growth.
The firm is positive that these constraints will ease throughout the year. In particular, a May 15th press release has highlighted more NVIDIA Blackwell GPUs coming online, implying that improvements may already begin in Q2.
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