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Amazon.com Inc. (NASDAQ:AMZN) stock rose nearly 4% Monday as investors favored large hyperscalers with established data-center infrastructure amid growing concerns over AI expansion.
The broader market also rallied, with the Nasdaq gaining 3.15% and the S&P 500 advancing 2.14%.
Growing scrutiny of data-center power and water consumption has weighed on AI infrastructure companies, including CoreWeave Inc. (NASDAQ:CRWV) and Nebius Group N.V. (NASDAQ:NBIS).
Following the elections, attention has shifted to local restrictions on data-center development.
Recent commentary identified 41 local data-center measures across 10 states. Of those, 39 outcomes favored some form of restriction.
Meanwhile, UBS warned that potential construction delays could threaten roughly 30% of planned U.S. data-center capacity additions in 2028.
These concerns could benefit established cloud providers such as Amazon, which already operates extensive computing infrastructure.
A panelist on CNBC's Final Trades recommended Amazon in a segment published Friday, pointing to its strong balance sheet despite concerns about credit markets.
The panelist highlighted Amazon's financial strength as a key advantage amid uncertainty in credit markets.
Amazon shares traded above their major moving averages, including the 20-day simple moving average (SMA) of $254.73 and the 200-day SMA of $244.09.
The moving average convergence divergence (MACD) indicator remained above its signal line, suggesting positive momentum.
The stock also maintained its longer-term bullish trend following a golden cross in May.
Key resistance stands near the 52-week high of $287.20, while support lies around $244.50.
The stock carries a consensus Buy rating and an average analyst price forecast of $333.56.
Freedom Broker recently raised its price forecast to $330, while UBS increased its forecast to $352. Scotiabank lowered its forecast to $300.
Amazon shares gained 3.52% to $268.43 at the time of publication Monday, according to market data.
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