Bank of America reiterates a "Buy" rating on Amazon (AMZN) stock and sets a target price of $275, implying approximately 30.6% upside. The bank believes the market has misjudged Amazon's capital expenditures in artificial intelligence, viewing them as infrastructure capacity that can be directly monetized. Bank of America notes that AWS's power capacity has doubled by Q3 2025 to nearly 15 gigawatts, with new sales reaching $21.2 billion. The bank forecasts that AWS's power capacity will reach 31.4 gigawatts by 2027, with revenue potentially hitting $45 billion, surpassing Wall Street expectations. The rapid growth of AI company Anthropic is seen as a key catalyst, with annualized revenue exceeding $19 billion and expected to bring AWS up to $1 billion in sequential revenue growth in the first quarter.