Bank of America Securities reiterated its buy rating on Amazon and set a price target of $310. The firm believes that Amazon's continued growth in AI and cloud businesses, despite no further increases in capital expenditure budgets, is the main reason for its optimistic outlook.

Target price raised to $310

According to a report sent to clients by Bank of America Securities analyst Justin Post on June 1, Amazon's stock price is expected to break through $300 and reach a new target of $310.

The report noted that Amazon's stock price has not yet reached $300 in the first five months of 2026. Its year-to-date high was in early May, reaching approximately $276, after which the stock price fell back and has recently been consolidating.

Bank of America is optimistic about the performance of its AI and cloud businesses.

Justin Post argues that Amazon has accelerated the growth of its AI and cloud businesses without further increasing its capital expenditure budget. This contrasts with some competitors who continue to increase their investments.

The report also stated that Amazon had previously announced a $200 billion investment in AI-related businesses, but did not further increase this budget in 2026. Bank of America judged that the company's current investment efficiency and business expansion capabilities remain robust.

The stock price is still consolidating in the near term.

In the short term, Amazon's stock price has fallen nearly 6% in the past month. It opened at $256.50 on Wednesday, after falling 1.81% in the previous trading day.

This means that Bank of America's target price of $310 still has significant upside potential from the latest trading level. The article also mentions that Amazon is currently in a consolidation phase, and the market will continue to focus on the progress of its AI business and the growth pace of its cloud business.