There is no denying the growth of artificial intelligence has dominated the stock market over the last year. That is set to continue for one of the biggest companies in the world. Indeed, Amazon (AMZN) and its Amazon Web Services (AWS) business are set to get a massive AI boost in 2025, as the stock could benefit.
The company has become one of the most promising investments this year. It has firmly emerged as a top option among the surging Magnificent 7. Yet, its position in front could only be furthered by reports that its highly successful cloud computing business would get a notable lift this year.
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Amazon AWS Gets AI Boost as Experts Have High Hopes for AMZN Stock
There is no argument that Amazon has immense potential in 2025. The stock could be set to surge as the company excels in various areas that are enjoying significant demand. These factors have driven shares to get a $306 target in a recent rating update.
That growth trajectory could only go up from here with recent surfacing reports. Indeed, Amazon (AMZN) is set to give its AWS business an AI boost as experts hope for 2025 only to increase. Its cloud computing business remains one of its most prominent and could drive even bigger gains this year.
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According to leading tech analyst and I/O Fund, Beth Kindig, Amazon in-house shipments to support AI demand at AWS are projected to increase more than 70% year over year in 2025. This move marks yet another area of integration that the company is planning with its AI offerings.
Amazon’s Annapurna Labs both designs and manufactures in-house chips to improve its cloud and machine learning performances. This increase will help AWS be far more efficient and faster. The rigorous testing has the chips prepared for real-world application and is likely to drive increased investment interest.
That has led many to view Amazon as a top AI stock entering this year. CNN Data has currently given the e-commerce juggernaut a 10 outperform rating for the next 12 months. Moreover, of the 74 surveyed analytes, 95% hold a buy rating on the stock.
