Amazon.com, Inc. (NASDAQ:AMZN) is one of the AI Stocks Analysts Are Watching Closely. On January 15, Raymond James analyst Josh Beck lowered the price target on the stock to $260.00 (from $275.00) while maintaining an “Outperform” rating. While artificial intelligence is seen as a key driver for AMZN, analysts have cut their price target on Agentic Commerce risks.

Firm analysts view Amazon as sitting in the middle in the AI Stack framework, with the AI narrative anticipated to be a key swing factor for internet multiples despite expectations of a robust fundamental backdrop.

Its price target cut reflects a more cautious stance on agentic commerce risks that may benefit non-Amazon ecommerce platforms.  However, this is offset by above Street estimates on AWS and upside from robotics.

The firm remains positive on the stock in the near term, driven by strong holiday trends, positive ad checks, and beatable AWS estimates.

“More tactically, we are constructive heading into Q4 supported by robust holiday trends, favorable ad checks (Ads, Cloud) and beatable AWS estimates (see our bottom-up build across XPU, GPU, RPO etc.) though believe the AI Narrative is likely the primary factor influencing stock performance in the year ahead and look for meaningful progress against Trainium/Neuron, Nova/Kira, Alexa+/Rufus, Zoox/Prime Air Drones and/or Robotics to improve AI Stack positioning.”

Amazon.com Inc. (AMZN) is an American technology company offering e-commerce, cloud computing, and other services, including digital streaming and artificial intelligence solutions.

While we acknowledge the potential of AMZN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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