KeyBanc Capital Markets reaffirmed its bullish outlook on Amazon (AMZN) following the company’s AWS re:Invent conference, citing strong momentum in cloud infrastructure and AI-driven product launches. The firm highlighted Amazon’s expanding dominance in enterprise technology and its growing ecosystem of AI-powered services.
- AWS introduced a 40% increase in compute capacity via new Graviton3-based instances
- AI inference latency reduced by 25% on AWS infrastructure
- AWS AI services now serve over 130 million monthly active users, up 50% YoY
- AWS revenue projected at $92 billion in 2025, contributing 60% of Amazon’s operating income
- Amazon stock rose 3.2% in after-hours trading post-re:Invent
- AWS now supports over 130 million monthly active users across AI-driven tools
KeyBanc Capital Markets has retained its bullish rating on Amazon (AMZN), underscoring confidence in the company’s long-term growth trajectory after the recent AWS re:Invent event. The firm pointed to the conference as a pivotal moment for Amazon’s cloud division, where multiple new AI-focused services and infrastructure upgrades were introduced, reinforcing AWS’s leadership in the enterprise technology space. These include enhanced generative AI tools, expanded data center capacity in key global regions, and new enterprise-grade security features designed for regulated industries. Specifically, Amazon announced a 40% increase in compute capacity available through its newest Graviton3-based instances, with a 25% reduction in latency for AI inference workloads. The company also revealed that AWS’s AI services now support over 130 million monthly active users, a 50% increase year-over-year. These figures signal continued demand for scalable, high-performance cloud solutions, particularly in AI development and deployment. The market reacted positively, with Amazon’s stock rising 3.2% in after-hours trading following the announcement. Analysts note that AWS’s revenue is projected to reach $92 billion in 2025, accounting for approximately 18% of Amazon’s total revenue. This segment continues to generate over 60% of the company’s operating income, underpinning Amazon’s financial resilience despite macroeconomic headwinds in retail. Investors and enterprise clients are increasingly viewing AWS as a strategic partner rather than just a cloud provider, driven by the integration of AI into core infrastructure. KeyBanc’s outlook reflects confidence in Amazon’s ability to sustain innovation and market share, particularly as demand for hybrid cloud solutions and AI-optimized workloads accelerates globally.