Amazon stock dipped below the $200 level mid-February but reclaimed the territory as investments in the AI sector surged and is now looking at $300. The billions being invested into AI is worrying investors as the returns are yet to see the light of day. Traders loathe the idea of AI being a bubble and is on the path for a reality check, similar to the Metaverse concept. However, the majority of analysts remain confident on the AI prospects touting it to be the next-generation of technology.
If it really is, Amazon stock’s $300 prospects is not far away as the earnings could push it higher. While these are hypothetical situations, the realities of the AI world is yet to be unveiled on a larger scale. While the average Joe’s AI usage is currently limited to prompting pictures and videos and asking questions to ChatGPT, the larger real-world uses-cases is yet to see reality.
Also Read: Wells Fargo Updates Google Stock Price Target
When Will Amazon Stock Reach $300?
Two leading Wall Street firms have predicted that Amazon stock could reach $300 by the end of 2026. Wells Fargo analyst Ken Gawrelski said that AMZN could end the year trading close to $300 at around $292 to $295 per share. Also, analysts at Oppenheimer reiterated their ‘outperform’ call and raised their price target from $290 to $305 and $315. Both of these have a similar perspective claiming that AMZN’s valuation will increase this fiscal year.
Another reasoning for Wall Street’s Amazon stock to $300 is that the AI boom will go unabated in 2026. Evidence shows that several stakeholders are bullish on the technology’s prospects and the board will approve spending for R&D. This fuels sector wide innovation exposing all tech giants into the AI industry. Therefore, they consider the momentum to continue this year that could lead to a bounce back in prices.
