KeyBanc Capital Markets believes that Amazon could benefit from the artificial intelligence trade. The bank resumed coverage of dominant U.S. e-commerce platform with an overweight rating and a $300 price target. Shares of Amazon have added less than 1% this year. KeyBanc’s target implies that the stock could rise nearly 36% from its Thursday closing price. “With shares trading well below historical levels at 22.9x 2027E P/E, we believe this screens as an attractive entry point,” KeyBanc wrote. AMZN YTD mountain Amazon shares in 2025 As a catalyst, the bank pointed to improving growth into 2026 for Amazon’s Cloud business. It also noted that investors have grown too pessimistic on Amazon Web Services, viewing it as lagging behind competitors taking market share. “AWS has still been growing absolute revenue dollars near or better than competitors. Further, we view the ramp of gigawatt data center clusters (e.g., Project Rainier) and customers like Anthropic as a potential driver of revenue acceleration into 2026. In short, we would be surprised if AWS was left behind in the AI revolution,” the bank wrote. Meanwhile, advertising could fuel further gains in Amazon’s retail business. While the company primarily monetizes advertising on platforms it owns such as Amazon’s e-commerce site, Twitch and Prime Video, it has recently begun exploring more third-party advertising partnerships, which could boost Amazon’s total advertising growth. “We believe Amazon’s off-platform business is better positioned than Google’s Network business given unique access to Amazon’s data set. As such, we would view off-platform advertising as an incremental contributor to advertising growth over the next few years, with advertisements on Amazon.com (sponsored listings) and Amazon Prime Video still driving the majority of revenue,” KeyBanc said. The bank also highlighted growth in Amazon’s grocery business as another profit driver. KeyBanc believes Amazon could continue taking market share from smaller, less technology-enabled grocers. Amazon already plans to expand same-day perishables delivery to more than 2,300 U.S. cities, up from 1,000, by the end of 2025, the bank wrote. ( Learn the best 2026 strategies from inside the NYSE with Josh Brown and others at CNBC PRO Live. Tickets and info here . )