Amazon was the focus of attention on Tuesday following a report from Mizuho Securities indicating a surge in the company’s cloud computing division, Amazon Web Services. The company’s shares saw a slight increase in premarket trading and have risen by more than 10.5% in the past month, pushing its market valuation beyond $2 trillion.
The survey, conducted with a prominent channel partner, revealed a faster sales cycle in AWS according to Mizuho analyst James Lee. Lee maintained his positive outlook on Amazon, with an Outperform rating and a $240 price target. The study also showed that spending in various categories has remained relatively constant this year, with a focus on infrastructure, indicating a strong pipeline for workload migration and database upgrades.
Furthermore, the survey highlighted that generative AI projects are nearing a “tipping point,” with external models expected to be commercially deployed within the next six months. Consequently, AWS spending is forecasted to increase by 22% year-over-year, higher than the previous estimate of 20%, due to enhancements in core consumption and the end of cost optimization, as per Lee’s analysis.
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https://seekingalpha.com/news/4121597-amazon-adds-to-recent-gains-as-mizuho-sees-aws-accelerating-amid-ai-push?source=feed_symbol_amzn
