Amazon’s cloud computing unit, Amazon Web Services (AWS), has been a major driver of the company’s recent success, with a recent survey indicating an acceleration in its growth. According to Mizuho Securities analyst James Lee, the survey conducted with a top channel partner revealed a faster sales cycle for AWS, with spending shifting towards infrastructure. Lee maintained his Outperform rating and $240 price target for Amazon, as the survey also suggested a strong pipeline for workload migration and database upgrades.
The survey also highlighted the increasing importance of generative AI projects, which are expected to be commercially deployed within the next six months. This, combined with improvements in core consumption and the end of cost optimization, is expected to drive AWS spending to increase by 22% year-over-year, up from a previous estimate of 20%. As a result, Amazon’s valuation has exceeded $2 trillion, with its shares gaining more than 10.5% over the past month.
Overall, the survey paints a positive picture for Amazon’s cloud computing unit, signaling continued growth and potential opportunities for expansion in the coming months. Investors are optimistic about the future prospects of AWS, which remains a key driver of Amazon’s overall business performance.
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https://seekingalpha.com/news/4121597-amazon-adds-to-recent-gains-as-mizuho-sees-aws-accelerating-amid-ai-push