Amazon’s renewed AI push and a blockbuster Anthropic deal have Wall Street suddenly bullish — and the market is taking notice. AMZN is trading around $250, up nearly 22% over the past 30 days, and gained roughly 1% so far this week after the announcement.
What happened
- Amazon and Anthropic, partners since 2023 through Project Rainier and the expansion of Anthropic’s Claude models, said Anthropic will commit more than $100 billion to AWS over the next decade. That commitment includes securing up to 5GW of new capacity to train and run Claude.
- Amazon CEO Andy Jassy touted the company’s custom AI silicon and AWS Trainium, saying it delivers “high performance at significantly lower cost” and that Anthropic’s long-term commitment “reflects the progress we’ve made together on custom silicon.”
Why investors care
- Analysts point to three growth engines: AWS momentum, AI chip revenue from Amazon’s custom silicon, and a rapidly expanding advertising business. Wall Street is increasingly optimistic that these factors will lift AWS revenue materially in coming quarters.
- Citi analyst Ron Josey raised AWS expectations, modeling 37% year-over-year AWS revenue growth in 2027. His forecast includes a conservative $31 billion contribution from Anthropic, noting Anthropic’s roughly $30 billion annual revenue run rate as of late March and more than 100,000 customers building with Claude on AWS.
- KeyBanc’s Justin Patterson highlighted capacity gains, AI diffusion, and client expansion as tailwinds for AWS. He flagged Anthropic’s rapid ARR growth — from $9 billion in December 2025 to $30 billion in early April 2026 — and assumes about 60% of Anthropic’s spend will flow to AWS.
Street targets and takeaways
- Several analysts expect upside after Amazon’s next earnings release; Wedbush and TD Cowen have set $300 price targets, implying significant upside from today’s levels.
- For crypto and blockchain projects that depend on large-scale cloud compute — whether for AI-driven analytics, on-chain data processing, or node infrastructure — the deal underscores AWS’s growing role as a high-capacity vendor for compute-intensive workloads.
Bottom line: Amazon’s deepening AI relationship with Anthropic reinforces AWS’s position as a core infrastructure provider for next-generation AI workloads — a narrative Wall Street is rewarding with higher valuations and bullish price targets.
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