Wall Street Boosts Amazon Outlook on AWS AI Surge Ahead of Earnings

Amazon has reclaimed Wall Street's favor with accelerating AWS growth and AI revenue topping $15 billion run-rate in Q1, alongside custom-chip sales exceeding $20 billion annualized. The stock has surged 12% year-to-date and 24% in the past month amid this momentum, but faces scrutiny in upcoming Q1 results expected at $177 billion total revenue and $37 billion from AWS, where margins (35% last quarter) and capex sustainability are key. A $200 billion spending plan for AI draws bullish targets of $285–$300 from analysts, tempered by fears of multi-year outlays potentially hitting $320 billion in 2027.