Amazon (NASDAQ: AMZN) is trading in the neighborhood of $274 a share, just a hair below its all-time high, and looks poised to become a $300 stock later this year. The tech company is delivering high growth rates in multiple industries while boosting profit margins.
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Artificial intelligence has created many growth opportunities
Investors have been monitoring Amazon’s capital expenditures as the company aims to gain market share in the rapidly growing AI infrastructure industry. However, its string of recent quarters shows how those investments have translated into direct growth.
Amazon Web Services has been the biggest beneficiary. Growth continues to accelerate for that part of the business. In Q1, sales surged 28% year over year as more customers turned to Amazon to build the digital foundation for their AI apps and websites.
It’s not that long ago that AWS’ sales growth rates were barely in the double-digit percentages. Back in Q4 2023, AWS grew by only 13% year over year, a steep drop from its 20% growth rate in Q4 2022.
AWS’ revenue growth rates only crossed 20% again in 2025, and their continued acceleration suggests a 30% growth rate is possible later this year. That result could give Amazon a lot of momentum toward a $300 share price. Wall Street isn’t waiting around for Amazon to deliver that news: Among the 46 analysts covering the stock, the average one-year price target is $319.
Amazon has multiple growth levers
Most people view Amazon as an online marketplace, and some investors treat it as an online marketplace that also offers cloud computing services. However, that perception doesn’t scratch the surface of what Amazon offers for long-term investors.
It has seamlessly integrated its advertising segment into the shopping experience, and that unit has delivered consecutive quarters of 20%-plus year-over-year revenue growth, including a 24% improvement in Q1. CEO Andy Jassy highlighted the ad segment’s success, noting that it reached over $70 billion in revenue in the past 12 months. He also mentioned Amazon’s new AI chip business, which exceeded a $20 billion revenue run rate.
The company even has a satellite internet service called Amazon Leo. The Starlink competitor is a relatively new business that was recently selected by Delta Airlines to be its in-flight Wi-Fi service provider, beginning in 2028.