Wolfe Research reiterated an Outperform rating on Amazon with a $250 price target. The firm identifies the partnership with AI firm Anthropic as a major catalyst for Amazon Web Services (AWS).
Anthropic’s contribution to AWS revenue is projected to reach $3.9 billion in 2025. This figure is expected to scale to more than $25 billion by 2027.
The monetization strategy leverages cloud hosting and Amazon’s proprietary Trainium chips. It also incorporates a revenue-sharing model through the Bedrock platform.
Wolfe Research forecasts 30% year-over-year revenue growth for AWS in both 2026 and 2027. This projection significantly exceeds current Wall Street consensus estimates.