Amazon Stock Price Target: AI Ambitions

Amazon Stock Price Target: This article discusses Amazon’s (AMZN) recent report and its new technique to increase profits and improve the user experience. Despite Nvidia’s (NVDA) dominance in the AI chip market, Amazon is talking about building its own AI chip to reduce its costs. Amazon’s AI business is growing by the day, with a revenue run rate of several billion dollars. The company’s Q2 results are mixed, in which AWS revenue grew 19% year-over-year, yet shares fell by 9.1%. Analysts lowered their targets due to mixed future outlooks and investment debates.

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Amazon AI: Why?

Some of its main points have been mentioned.

The company wants to use AI to make shopping easier, faster, and more fun for its customers.
It is developing its own AI chips to reduce costs and dependence on Nvidia.
The AI business is growing rapidly, with a billion-dollar revenue run rate.
Mixed Q2 results, AWS revenue up 19% year over year.
Analysts adjusted price targets, with some maintaining buy ratings and others lowering targets.

The Nvidia factor:

Nvidia is the leader in AI chips, but Amazon wants to reduce its reliance on the company. Amazon is developing its own AI chips.
Reducing the “Nvidia tax” (the high cost of using Nvidia chips).
Having more control over its AI technology.

Amazon’s AI business

Amazon’s AI business is growing rapidly.
Billions in revenue: AI is generating huge revenues for Amazon
Growing demand: Customers are increasingly using AI-powered services

Amazon Mixed Q2 Results:

Amazon’s Q2 results were mixed, including:

AWS revenue up: Amazon Web Services (AWS) revenue grew 19% year-over-year.

Stock down: Amazon’s stock fell 9.1% following the report.

Amazon Analysts’ Views:

Amazon Stock Analysis Pc: stock analysis

Analysts have adjusted their price targets, some maintaining buy ratings and others lowering their targets, because of:

Mixed forward outlook: uncertainty about Amazon’s future growth.
Investment debate: concerns about Amazon’s investment strategy.

Conclusion:

Amazon’s use of AI in its business is going to be very powerful, but for this, the company may have to face many challenges. But still, this decision by Amazon will help in the development of the company.