Investment firm KeyBanc Capital Markets has significantly raised its price target for Amazon.com (AMZN) stock to $325 from $285, implying a potential 30% rally from current trading levels. Analyst Justin Patterson, who maintains an Overweight rating, highlighted the accelerating growth of Amazon Web Services (AWS) as the central driver, fueled in large part by the explosive expansion of AI company Anthropic.
Anthropic's annual recurring revenue (ARR) has surged from $9 billion in December 2025 to $30 billion by early April 2026. KeyBanc estimates that AWS captures approximately 60% of Anthropic's total spending, making the AI firm's rapid growth a "meaningful tailwind" for Amazon's cloud division. Patterson now targets AWS revenue growth of around 30% year-over-year for the first quarter of 2026, an acceleration from the 20% growth it posted for full-year 2025.
Beyond AWS, Patterson flagged additional growth levers including solid grocery demand and the upcoming launch of Amazon's satellite internet service, Leo. The company's recent agreement to acquire Globalstar adds spectrum to support Leo's rollout. Furthermore, Amazon's proprietary Trainium AI chips, sold through AWS, have already generated over $20 billion in revenue, growing at triple-digit rates. CEO Andy Jassy has hinted at potentially selling these chips to third parties, opening a new revenue stream.
However, the analyst also noted near-term headwinds. The ongoing conflict involving Iran has disrupted shipping through the Strait of Hormuz and increased fuel costs, which is expected to weigh on Amazon's second-quarter guidance. In response, Amazon levied a 3.5% fuel surcharge on third-party sellers earlier in April to help offset some pressure.
Amazon stock slipped 1.4% to $247.18 on Monday, April 20, influenced by broader market concerns over geopolitical tensions. The stock remains about 1.4% below its record closing high from November 2025. The company is scheduled to report its first-quarter earnings on April 29.
