Amazon ( AMZN ) shares hit an all-time high on Tuesday, extending a recent breakout to trade above 200.
↑
x
Why Amazon is expanding into everything from AI to auto
The market cap for Amazon cleared $2 trillion for the first time last week, helped by a breakout from a flat-base buy point of 191.70. Tuesday's intraday high of 200.43 marked the first time that AMZN shares have moved above 200 since the stock split for 20 in June 2022.
Shares have softened slightly and were sitting at 200.06 at last check, representing a 1.4% gain for Amazon on the stock market today.
Analyst AI sees the inflection point.
Push for Amazon stock after a positive analyst report. The firm maintains Amazon stock as its top pick after a quarterly survey of Amazon Web Services users, Mizuho analyst James Lee wrote to clients on Tuesday.
According to FactSet, Lee expects AWS's generative AI offering to help drive annualized sales growth to 2024 more than the 18 percent analysts are estimating on average.
“Gen-AI projects are nearing an inflection point, with external-facing models six months away from commercial deployments,” Li wrote to clients. “With this in mind, we have increased confidence in AWS acceleration and forecast our above-the-street revenue growth of 20%.”
Lee reiterated a 240 price target for Amazon stock.
Amazon Chief Executive Andy Jessee, who will complete his third full year on the job on Friday, has made generative AI a central focus for Amazon's future plans. AWS Cloud Business is hoping to take advantage by renting access to the vast computing power required to train and run AI algorithms. AWS is a key profit driver for Amazon and competes with it. Microsoft (MSFT) and Google's parent company the alphabet (GOOGL).
To help fuel its AI ambitions, Amazon plans to spend more than $100 billion on data centers over the next decade, the Wall Street Journal reported Monday.
Amazon stock: Up more than 30 percent this year
After a difficult 2022, Amazon stock is up more than 80 percent in the past year. But before last week's breakout, shares had yet to decisively climb the July 2021 highs near 188.
But Amazon stock has gained 31.5% this year and is now firmly in record territory. Shares have easily outpaced gains for the S&P 500 of about 15%.
You may also like:
Amazon crossed this milestone during the Andy Jessie era. what's next?
IBD Digital: Unlock IBD's premium stock lists, tools and analysis today.
AI Stocks: Tech Giants, Cloud Titans, Chipmakers Battle for an Edge
Is Amazon stock a buy now?
The trend of strength remains. Tesla, These 5 Stocks in the Buy Zone