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Amazon's stock witnessed a notable increase after the company revealed a significant multi-year collaboration with OpenAI, valued at $38 billion. This strategic alliance positions Amazon Web Services (AWS) as the primary provider of computing infrastructure for OpenAI's extensive artificial intelligence operations. Market analysts at Wedbush, specifically Dan Ives and Scott Devitt, responded by raising their price target for Amazon shares to $340, setting a new high for the Street and signaling robust confidence in Amazon's future trajectory within the AI and cloud computing landscape. This partnership highlights the escalating demand for robust cloud solutions and AI capabilities across industries, reinforcing Amazon's leadership in this rapidly evolving technological domain.

Amazon Forges $38 Billion OpenAI Partnership, Propelling Stock and Analyst Confidence

On Monday, November 3, 2025, Amazon.com, Inc. (NASDAQ: AMZN) shares experienced a considerable uplift after the e-commerce and cloud giant officially announced a monumental multi-year partnership with OpenAI, valued at an impressive $38 billion. This groundbreaking agreement stipulates that Amazon Web Services (AWS) will supply the essential computing infrastructure necessary to power OpenAI's advanced artificial intelligence workloads.

Following this announcement, prominent Wedbush analysts Dan Ives and Scott Devitt promptly revised their outlook for Amazon's stock, elevating their price target from $330 to an industry-leading $340. This revised target now stands as the highest on Wall Street, reflecting their profound belief in the strategic importance and potential impact of this new collaboration.

According to the analysts' comprehensive report, the collaboration will initially leverage OpenAI's utilization of AWS's existing data centers. However, Amazon has concrete plans to significantly expand its dedicated infrastructure to accommodate the anticipated future demands stemming from this partnership. The full operational capacity of this expanded infrastructure is projected to be in place by the culmination of 2026, with the partnership itself designed to foster continuous growth over the next seven years.

Wedbush views this deal as a logical and powerful extension of Amazon's recent strategic alliances, including its partnership with Anthropic. These initiatives collectively reinforce Amazon's dominant position as a pivotal leader in the burgeoning field of AI cloud services. AWS has already achieved an annual run rate exceeding $130 billion, demonstrating robust year-over-year growth fueled by the accelerating adoption of AI technologies and the increasing demand for its core cloud services. Amazon has consistently focused on enhancing AWS's capacity and is currently on track to double it by 2027, driven by the intense market demand for its offerings.

The Wedbush analysts expressed significant optimism regarding the sustained demand for AWS, anticipating continued momentum for the segment. They stated in their note, \"We are encouraged by the implied level of demand in the coming quarters given the pace of backlog growth and a higher capex guide for 2025. We think momentum will continue for the segment.\" This sentiment underpins their elevated price target, which suggests a potential 33% upside for Amazon's shares. On the day of the announcement, Amazon's stock concluded trading with a 4% increase, reaching $254.

Reflections on Amazon's Strategic AI Move

This substantial partnership between Amazon and OpenAI marks a pivotal moment in the competitive landscape of cloud computing and artificial intelligence. It underscores the critical role that robust, scalable infrastructure plays in advancing AI research and deployment. For Amazon, this deal not only solidifies AWS's market leadership but also demonstrates its strategic foresight in catering to the explosive growth of AI workloads. The increased price target from Wedbush analysts reflects a strong market confidence in Amazon's ability to capitalize on these emerging trends. From an observer's perspective, this collaboration could catalyze further innovations in AI, pushing the boundaries of what is possible and shaping the future of technology, while simultaneously ensuring Amazon remains at the forefront of this transformation.