Amazon’s cloud computing unit, Amazon Web Services, has been experiencing accelerated growth according to a recent survey conducted by Mizuho Securities. The survey, which involved a leading channel partner, indicated an increased sales cycle and a shift towards infrastructure spending. Analyst James Lee maintained his Outperform rating and $240 price target on Amazon, noting that the company’s valuation has surpassed $2 trillion. The survey also revealed that generative AI projects are nearing commercial deployment, with external models expected to be operational within six months. As a result, AWS spending is projected to increase by 22% year-over-year, up from the previous estimate of 20%, due to improvements in core consumption and the end of cost optimization. Overall, the survey suggests a strong pipeline for workload migration and database upgrades within Amazon Web Services, driving the company’s stock price higher in premarket trading and over the past month.
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https://seekingalpha.com/news/4121597-amazon-adds-to-recent-gains-as-mizuho-sees-aws-accelerating-amid-ai-push?source=first_level_url:market-news|section_asset:main
