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    The Bull Case For Amazon.com (AMZN) Could Change Following AWS’s New Graviton5 AI Infrastructure Push - Learn Why

    Simply Wall St·12/10/2025 23:26:35
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    • In early December 2025, Amazon Web Services introduced higher-performance Graviton5-powered EC2 M9g instances and expanded its Nova AI portfolio, while partners like Dynatrace, BigID, Reply, and Perion announced deeper integrations that extend AWS’s reach across observability, security, agentic AI, and advertising.
    • Together with Amazon’s multi-billion-dollar AI spending plans and expanded India investment roadmap, these developments highlight how AWS’s AI infrastructure and ecosystem positioning are increasingly central to Amazon’s long-term growth mix.
    • We’ll now explore how AWS’s expanded AI infrastructure, including the new Graviton5-based M9g instances, may influence Amazon’s existing investment narrative.

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    Amazon.com Investment Narrative Recap

    To own Amazon, you need to believe its high-margin AWS and advertising engines can keep compounding faster than its mature retail core, even as investment needs stay heavy. The latest Graviton5 and Nova AI launches reinforce AWS as the key short term catalyst, while rising capital intensity and competition in cloud and AI remain the biggest near term risk. The recent partner and product news does not materially change that balance yet.

    Among the recent updates, the launch of Graviton5-based EC2 M9g instances looks most relevant for the current thesis, because it directly targets performance and cost for AWS’s largest customers. If these customers keep shifting more workloads to Graviton-powered instances, that could support AWS’s profitability and help offset some of the margin pressure from Amazon’s wider AI infrastructure buildout.

    Yet even as AWS’s AI push accelerates, investors should be aware of how rising chip, data center, and power costs could eventually...

    Read the full narrative on Amazon.com (it's free!)

    Amazon.com's narrative projects $905.9 billion revenue and $111.9 billion earnings by 2028.

    Uncover how Amazon.com's forecasts yield a $294.65 fair value, a 27% upside to its current price.

    Exploring Other Perspectives

    AMZN 1-Year Stock Price Chart
    AMZN 1-Year Stock Price Chart

    Simply Wall St Community members have published 110 fair value estimates for Amazon, ranging from US$207 to about US$306 per share, reflecting wide disagreement on upside. Set against this, the recent AI driven AWS momentum and heavy investment needs underline why you may want to compare several of these views before deciding how sustainable today’s profitability and growth mix really is.

    Explore 110 other fair value estimates on Amazon.com - why the stock might be worth as much as 32% more than the current price!

    Build Your Own Amazon.com Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.