Ken Fisher’s Amzn Pick Gains 22% as AI Spending Surges
Amzn has risen 22% over the past year and 12.2% year-to-date as Ken Fisher’s latest portfolio spotlight puts Amazon.com, Inc. in the AI trade. For investors, the stock now sits between a 25.64 forward P/E ratio and a wave of spending tied to cloud demand, chips, and partnerships.
Truist Raised Amazon To $320
May 29 brought a higher view from Truist, which lifted its Amazon price target to $320 from $310 and kept a Buy rating. AWS revenue estimates, along with Amazon’s partnerships with Anthropic and OpenAI, factored into that call, keeping attention on how much of Amazon’s next leg depends on cloud execution rather than retail alone.
24% AWS revenue growth in the fourth quarter and 22% growth in highly profitable advertising revenue gave the business a clearer earnings base. Vulcan Value Partners wrote that “Amazon reported strong results for its fiscal year and fourth quarter,” and said “AWS is benefitting from AI driven demand for its cloud services and its growth is accelerating.”
Anthropic, Trainium, And $100 Billion
$100 billion is the amount Anthropic will spend to use Amazon’s cloud computing services, while Amazon itself will invest as much as $25 billion in the company. Amazon’s computing infrastructure and Trainium custom AI chips are being aimed directly at AI workloads, and a large portion of the Anthropic investment depends on performance milestones, which ties the outlay to execution rather than a blank check.
25.64 is Amazon’s forward P/E ratio, below the total market’s 27.66 forward P/E ratio, even as the company keeps expanding its AI footprint. That gap leaves the stock looking less expensive than the broader market on forward earnings, but the spending side of the story is harder to ignore.
Bezos, Jassy, And $200 Billion
2026 capital spending is forecast to rise over 50% to about $200 billion, and that number sits at the center of the push to build more cloud capacity and AI infrastructure. Jeff Bezos said one breakthrough technology would shape Amazon’s destiny, while Andy Jassy called generative AI a “once-in-a-lifetime” technology, reinforcing why the company is still pressing into the buildout.
The friction point is simple: investors get faster AI demand, but they also get a capital plan that keeps expanding. Vulcan Value Partners said “Bears believe that Amazon is investing too much money in capital spending,” even as it argued the company will become “even more competitively entrenched as the leading cloud services provider in the world,” a view that now hinges on whether the heavy spending keeps translating into AWS growth.
