BofA Securities analyst Justin Post reiterated a Buy rating on Amazon.com Inc (NASDAQ:AMZN) and kept his $275 price target, arguing that Amazon Web Services‘ aggressive capacity expansion could drive upside despite near-term concerns around AI spending.
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AWS Capacity Buildout Gains Momentum
Post noted AWS doubled power capacity since 2022 and added 3.9 gigawatts in 2025 (including 1.2 gigawatts in the fourth quarter).
The analyst said Amazon plans to double AWS capacity again by 2027, adding to AWS revenue growth, accelerating from 17% year-over-year in the second quarter of 2025 to 24% in the fourth quarter of 2025.
Revenue Upside From Power Expansion
Using Amazon’s commentary and historical capex data, he estimated AWS power capacity could climb to more than 31 gigawatts by end-2027 from about 15 gigawatts in the third quarter of 2025.
Assuming AWS continues to generate about $5.4 billion in incremental…