Key Highlights
- KeyBanc increased Amazon’s price target from $285 to $325, suggesting approximately 30% upside from current trading levels.
- Anthropic’s annual revenue run rate exploded from $9B in December 2025 to $30B by April 2026, potentially lifting AWS performance.
- Analysts estimate AWS captures approximately 60% of Anthropic’s overall expenditures.
- CEO Andy Jassy suggested potential third-party sales of Trainium chips, with chip-related revenue already topping $20B via AWS.
- Shares declined 1.4% Monday to $247.18, trading roughly 1.4% beneath the record closing high set in November 2025.
Analysts are growing increasingly bullish on Amazon before its April 29 quarterly results, with much of the optimism stemming from Anthropic’s remarkable expansion and persistent AWS strength.
Amazon.com, Inc., AMZN
KeyBanc’s Justin Patterson boosted his Amazon price objective to $325 from $285 over the weekend. This represents approximately a 30% gain from Monday morning’s trading price.
Patterson simultaneously increased his 2026 revenue projection by 1% and his 2027 forecast by 2%.
Amazon stock fell 1.4% Monday, settling at $247.18 amid wider market concerns surrounding U.S.-Iran geopolitical tensions. Shares finished Friday at $250.56 — merely 1.4% under the all-time closing peak reached in November 2025.
The pre-earnings landscape appears quietly promising.
Anthropic has emerged as a significant component of the AWS narrative. The company’s annual revenue run rate skyrocketed from $9 billion in December 2025 to $30 billion in early April 2026 — a trajectory that demands attention.
KeyBanc calculates that AWS receives roughly 60% of Anthropic’s complete spending. This represents a substantial revenue stream connected to one of the world’s most rapidly expanding AI enterprises.
Anthropic has maintained an active product development schedule. The company launched Claude Opus 4.7 this month — representing its most sophisticated reasoning model to date. Additionally, it introduced Claude Mythos, a “hyper-agentic” model that Anthropic has restricted from public release citing national security considerations.
AWS Performance in the Spotlight
Patterson indicated he anticipates a “combination of capacity gains, AI diffusion, and client expansion” propelling AWS during the first quarter. He projects 30% year-over-year expansion for AWS — representing acceleration from 2025, when AWS delivered $128.7 billion in annual revenue, climbing 20% versus the previous year.
Impressive performance last week from Taiwan Semiconductor (TSM) provided additional validation that AI infrastructure demand continues robust entering earnings season.
Wedbush’s Dan Ives reinforced this perspective. “We are seeing no cracks in AI demand on the chips/hardware or software front,” he stated, characterizing it as a “bright green light” for owning leading technology stocks.
Chip Business and Satellite Ventures Under Watch
Amazon’s Trainium chip division has already exceeded $20 billion in revenue through AWS, expanding at triple-digit percentages year over year. In his annual shareholder correspondence, Jassy signaled willingness to sell Trainium chips to external parties — representing a potentially significant new revenue stream.
On the retail front, KeyBanc highlighted strong grocery performance and the forthcoming debut of Amazon Leo, the company’s satellite broadband offering. Amazon recently announced plans to acquire Globalstar, securing additional spectrum to facilitate Leo’s deployment.
Patterson does identify one concern: the continuing Iran situation has interrupted shipping through the Strait of Hormuz and elevated fuel expenses. He anticipates this will impact Amazon’s second-quarter outlook. The company’s 3.5% fuel surcharge imposed on third-party merchants earlier this month may partially mitigate that headwind.
Amazon is scheduled to announce first-quarter financial results on April 29.
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