BofA Securities Reiterates Buy Rating on Amazon.com (AMZN), PT $210, 'we think AWS remains well-positioned'
BofA Securities analyst Justin Post reiterated a Buy rating and $210.00 price target on Amazon.com (NASDAQ: AMZN).
The analyst comments "Bloomberg reported that AWS and Intel will coinvest in custom chip designs under a "multi-year, multi-billion-dollar" partnership. As part of the partnership, Intel will produce custom AI fabric chips for AWS that will be built on Intel 18A, the company's most advanced process node (in August, Intel reported that its lead products on 18A would start production in 2025, so this announcement is likely immaterial to 2024). Amazon has consistently leaned into offering customer choice within AWS - from multiple third-party LLMs on Bedrock to different 3P & 1P chips for workloads - and Intel chips could be more cost effective for customers than alternatives. Despite investors' concerns that AI could disrupt AWS's strong market position within Cloud, we think AWS remains well-positioned to capture broad-based AI customer demand due to a more diverse and growing product offering. Maintain Buy rating on Amazon."
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Shares of Amazon.com closed at $184.89 yesterday.