BofA Securities analyst Justin Post upgraded Amazon stock to Buy, citing the new Oracle partnership and Amazon Web Services’ (AWS) continued AI growth. The partnership unlocks new opportunities for cloud providers, while AWS’s differentiated infrastructure and strong AI capabilities are driving client wins. Post’s price target reflects a Sum Of The Parts (SOTP) analysis, valuing Amazon’s various business segments, including retail, AWS, and advertising.
Oracle shares surged in pre-market trading after reporting better-than-expected earnings and announcing a new partnership with Amazon Web Services (AWS). Other notable movers included Silexion Therapeutics, Quoin Pharmaceuticals, and Actelis Networks, while Edgio, UTime Limited, and SmartKem saw significant declines.
Amazon is testing a new server design featuring its own AI chips, aiming to reduce reliance on NVIDIA GPUs and offer more cost-effective AI solutions for its customers. The company is planning to invest heavily in data centers utilizing its new AI chips, promising significant cost savings and performance improvements.
CodeWhisperer, Amazon’s AI-powered coding assistant, has rebranded as Q Developer. The tool is now part of Amazon’s Q family of generative AI chatbots and helps developers with tasks such as debugging, troubleshooting, and security scans. Q Developer can also generate code in multiple languages, test code, and assist with implementing new code. The premium version, Q Developer Pro, offers higher usage limits, user management tools, and IP indemnity.
Amazon’s first-quarter earnings report on Tuesday will provide insights into the health of the U.S. consumer and the artificial intelligence (AI) sector. AWS, Amazon’s cloud computing business, has become a key profit driver, and investors will be watching its growth closely. Other areas of interest include advertising revenue, the performance of the retail business, and the company’s cost structure.
AWS expands Bedrock’s capabilities with Custom Model Import, allowing organizations to seamlessly integrate and manage their proprietary generative AI models. With a focus on model customization, infrastructure support, and ethical safeguards, AWS aims to lead in the enterprise generative AI space.
