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Amazon.com recently announced strong third-quarter 2025 results, highlighted by a surge in AWS revenue and the signing of a landmark multi-year, US$38 billion cloud services agreement with OpenAI to support advanced AI workloads.
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This collaboration marks OpenAI’s first major cloud partnership outside of Microsoft, underscoring Amazon’s strengthening position in artificial intelligence infrastructure and cloud computing.
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We’ll explore how the new OpenAI partnership and AWS growth momentum could reshape Amazon’s investment narrative around cloud and AI innovation.
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To own Amazon.com shares, you have to believe the company can translate its scale in e-commerce and technology into leadership in cloud and AI, offsetting regulatory and cost pressures. The landmark US$38 billion multi-year cloud partnership with OpenAI and recent surge in AWS revenue offer a clear short-term growth catalyst, but the demands of rapid innovation and rising capital intensity remain the primary risk to margins and overall earnings. The announcement helps the catalyst, but does not materially erase the risk.
Among announcements, the expanded collaboration between AWS and Verizon to provide resilient, high-capacity infrastructure for AI workloads stands out. This builds on AWS’s momentum by supporting large-scale deployments for clients pursuing advanced AI applications, reinforcing the thesis that Amazon is making meaningful progress capturing the next wave of cloud and AI adoption.
However, increased capital needs and supply constraints tied to supporting these ambitious partnerships are risks investors must not ignore…
Read the full narrative on Amazon.com (it’s free!)
Amazon.com’s outlook suggests revenues of $905.9 billion and earnings of $111.9 billion by 2028. This is based on an assumed annual revenue growth rate of 10.6% and represents an increase in earnings of $41.3 billion from the current $70.6 billion.
Uncover how Amazon.com’s forecasts yield a $287.57 fair value, a 18% upside to its current price.
142 fair value estimates from the Simply Wall St Community place Amazon.com’s worth between US$173.76 and US$294.90 per share. With AWS’s growing capital demands and heightened competition, your outlook on future margin resilience may tip your own view on the company’s true value.
Explore 142 other fair value estimates on Amazon.com – why the stock might be worth 29% less than the current price!