Amazon is having a moment. And by "moment," I mean a quarter so good that even its backlog — the stuff customers have ordered but not yet received — is growing like it's in a growth spurt. BNP Paribas analyst Nick Jones took notice and raised his price target on Amazon (AMZN) to $345 from $320, implying about 29% upside from the current price of $268.30. He kept an Outperform rating. The reason? AI. Specifically, the kind of AI demand that makes cloud computing look like the new oil.
Amazon's first-quarter results were a beat on nearly every front. Worldwide net sales hit $181.5 billion, about 2% above what Wall Street expected. AWS, the crown jewel, brought in $37.6 billion — also ahead of estimates. But the real jaw-dropper was the backlog: it surged 50% quarter over quarter to roughly $365 billion. And that's excluding the recently announced Anthropic deal, which would make it even bigger. Operating income came in at $23.9 billion, and adjusted EBITDA was $46.8 billion, both above expectations. The story here is simple: AI is driving demand across cloud, retail, and advertising, and Amazon is the biggest beneficiary.
Jones also highlighted the company's guidance, which suggests the party isn't over. Second-quarter revenue is expected to be between $194 billion and $199 billion, roughly 4% above consensus. Operating income guidance of $20 billion to $24 billion bracketed expectations. Amazon maintained its full-year 2026 capex guidance of $200 billion, but Jones noted that further increases are possible if the backlog keeps expanding. In other words, Amazon is spending big on AI infrastructure, and the demand is there to justify it.
Jones updated his model to reflect the stronger-than-expected Q1 and forward guidance, lifting his full-year revenue, operating income, and adjusted EBITDA forecasts. His new valuation is based on a sum-of-the-parts analysis, citing durable growth momentum across Amazon's businesses. The stock currently trades at $268.30, so the new target implies a nice run-up.
Jim Cramer also chimed in on Monday, calling Amazon a standout stock. He cited its resilience through a combination of a vast logistics network, a growing cloud business, and strong ties to the AI boom. He added that Amazon's strategy of maintaining low prices helps it stay competitive when consumers cut back. Despite market volatility, the stock is up about 17% this year and is well-positioned to weather higher interest rates. Cramer highlighted a structural shift toward a "computer-driven economy," noting that demand for computing power, AI infrastructure, and digital services continues to expand. He pointed to technology, cloud, and data center-related companies as key beneficiaries that remain relatively insulated from macro pressures like higher oil prices and borrowing costs. He urged investors to stay invested during market pullbacks, arguing that structural growth in a computer-driven economy continues to support key stocks and sectors.
Analyst consensus is bullish: the stock carries a Buy rating with an average price target of $320.70. Recent analyst moves include Stifel raising its target to $319.00 on May 1, Telsey Advisory Group to $315.00 on April 30, and Canaccord Genuity to $330.00 on April 30. All are Buy or Outperform ratings.
For ETF investors, Amazon is a heavyweight in several funds. The American Century Focused Dynamic Growth ETF (FDG) has a 9.70% weight in Amazon, the Franklin Focused Growth ETF (FFOG) has 9.02%, and the Dana Unconstrained Equity ETF (DUNK) has 9.10%. Because Amazon carries such a heavy weight in these funds, any significant inflows or outflows will likely trigger automatic buying or selling of the stock.
As of Tuesday premarket, Amazon shares were up 0.65% at $273.82, trading near its 52-week high of $276.10. The AI gold rush is real, and Amazon is holding the pickaxe.
