JMP Securities analyst Nicholas Jones has maintained a Market Outperform rating on Amazon.Com, Inc (NASDAQ:AMZN) with a price target of $175. During the AWS re: Invent 2023 event, Adam Selipsky, CEO of Amazon Web Services, highlighted various partnerships and new solutions that Amazon has developed for AWS users.
The event emphasized AMZN’s commitment to generative AI, improving performance, reducing customer costs, and prioritizing data privacy and security. Jones believes that AMZN’s continuous focus on cost reduction and efficiency improvement gives them a competitive advantage that will result in increased market share over time.
Jones sees AMZN as a dominant player in the cloud industry and a strong competitor in generative AI. He expects investors to closely monitor AWS’ growth in the fourth quarter of 2023 and its projected trajectory in 2024.
AWS remains at the forefront of innovation, developing cutting-edge technology down to the silicone level. Jones predicts that faster chips will enhance efficiency and lower costs for AWS customers, solidifying their position in the cloud ecosystem.
Jones also highlighted the partnership between AMZN and Nvidia Corp (NASDAQ:NVDA), stating that Nvidia’s software on AWS will accelerate Generative AI development for custom models, semantic retrieval, and drug discovery in the healthcare sector. This collaboration is expected to facilitate the adoption of Generative AI solutions across multiple industries in a secure and scalable manner.
Furthermore, the availability of Agents for Bedrock will enable companies to achieve higher levels of automation while safeguarding the privacy and security of their data. This is seen as a crucial step towards broader adoption of Generative AI.
Amazon Q offers tailored AI solutions for businesses, enhancing efficiency and productivity by providing employees with fast, relevant answers, content generation capabilities, and actionable insights. Additionally, Amazon Q, in conjunction with Amazon Connect, aims to improve customer service experiences for companies. The use of generative AI for internal efficiencies is a significant application, and Amazon Q is expected to drive its adoption.
In terms of price action, AMZN shares are currently trading slightly lower at $148.50, representing a decrease of 0.36% as of the last check on Wednesday.