Amazon’s cloud computing unit, Amazon Web Services, has experienced a significant acceleration in sales, according to a recent survey conducted by Mizuho Securities. The survey, based on feedback from a leading channel partner, indicated an accelerated sales cycle and a shift towards infrastructure spending. Mizuho analyst James Lee maintained his Outperform rating on Amazon and raised his price target to $240. The survey also revealed that generative AI projects are nearing commercial deployment, with external models expected to be available in the next six months. This has led to expectations of increased AWS spending, with a projected 22% year-over-year increase, driven by improvements in core consumption and the end of cost optimization efforts. As a result of these findings, Amazon’s shares have increased fractionally in premarket trading and have risen over 10.5% in the past month, pushing the company’s valuation beyond $2 trillion. In summary, the survey points to a strong pipeline for workload migration and database upgrades, with AWS poised for continued growth in the near future.
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