🚀 Amazon Could Hit $250 as TD Cowen Bets Big on AI and Retail Boom
Wall Street turns bullish on AMZN with AI strategy, Prime Day momentum, and ad revenue all firing at once
Amazon.com Inc. (NASDAQ: AMZN) is once again capturing the attention of investors and analysts alike. This time, TD Cowen has reaffirmed its “Outperform” rating on the tech and e-commerce behemoth, while raising its price target to $250, citing a potent combination of AI innovation, strong retail performance, and a booming advertising segment.
Currently trading near $190, Amazon stock is already up over 25% year-to-date, as confidence in its cloud business, AWS (Amazon Web Services), rebounds and optimism around generative AI continues to surge. TD Cowen’s bullish stance implies a further upside of over 30%, making AMZN one of the most attractive Big Tech plays heading into Q3.
The firm highlighted Amazon’s AI strategy as a key catalyst. While competitors like Microsoft (NASDAQ: MSFT) and Alphabet (NASDAQ: GOOGL) have stolen headlines with ChatGPT and Gemini integrations, Amazon has quietly built out its own LLM offerings via Bedrock and is heavily investing in custom silicon chips like Trainium and Inferentia. According to Cowen, these efforts will allow AWS to regain AI mindshare in the enterprise sector.
On the retail side, Amazon continues to dominate U.S. e-commerce, with Prime Day sales expected to break records once again this July. Analysts believe Amazon’s supply chain efficiency, combined with growth in its logistics and third-party seller services, will drive stronger margins in the second half of 2025.
One often overlooked growth engine is Amazon’s advertising division, which grew by 24% year-over-year in Q1. This high-margin segment, now larger than the revenue of YouTube, benefits from rising demand for sponsored placements and retail media integration, especially during high-traffic shopping periods.
TD Cowen also mentioned Amazon’s recent partnerships with Anthropic and Hugging Face as long-term AI bets that position the company well against rivals in the race for LLM dominance. These alliances could support AWS adoption in sectors like healthcare, finance, and manufacturing—all of which are rapidly implementing AI-powered solutions.
Despite macroeconomic uncertainties, TD Cowen maintains that Amazon’s diversified revenue streams and operating leverage position it to outperform both the Nasdaq and S&P 500 in the coming quarters. Investors are now watching Amazon’s upcoming Q2 earnings in late July for signs that AI monetization and retail expansion are translating into real profit acceleration.
If Cowen’s $250 target proves accurate, AMZN could add more than $600 billion in market cap, further solidifying its place among the FAANG 2.0 leaders driving the next leg of tech's bull market.