Amazon stock jumps 27% as AI push fuels analyst optimism

Amazon shares rose nearly 27% between early April and early May, bringing the stock to around $273 and placing it among the top performers of the "Magnificent Seven" group. Analysts are largely bullish, with a strong‑buy consensus from 41 Wall Street firms and price targets ranging from $280 to $306, reflecting expectations of continued growth.

Company chief Andy Jassy highlighted generative AI as a "once‑in‑a‑lifetime" technology that is already being integrated across Amazon’s services. Growth drivers include the cloud unit AWS, which posted 28% revenue growth in Q1 2026 to $37.6 billion, and the advertising business, up 24% year‑over‑year and now generating about $70 billion on a twelve‑month basis. However, the firm warned of rising costs, including higher memory component prices, fuel‑driven transportation expenses, and a $1 billion increase linked to its LEO satellite project, which could pressure free cash flow for several years.