Could Amazon Really Hit $375 This Year? Here’s Why It’s Possible

Quick Read

• Amazon (AMZN) delivered Q1 results with AWS growing 28% year over year (fastest in 15 quarters), a chips business at $20 billion annual run rate, and EPS of $2.78 beating estimates by 61%, yet shares remain at $264.14 despite fundamentals suggesting higher valuations.

• AWS AI revenue is running at over $15 billion with triple-digit growth and Anthropic committed over $100 billion in spending, positioning Amazon’s infrastructure business for sustained margin expansion as Trainium chips reduce data center costs.

• The analyst who called NVIDIA in 2010 just named his top 10 stocks and Amazon wasn't one of them. Get them here FREE.

Amazon (NASDAQ:AMZN) just delivered a quarter that should make every bear reconsider. AWS grew 28% year over year, the fastest pace in 15 quarters, the chips business crossed a $20 billion annual run rate, and EPS came in at $2.78 versus a $1.73 estimate.

Yet shares closed at $264.14 on May 15, well below where fundamentals suggest they should be. Can Amazon reach $375 a share in 2026?

Why Amazon Shares Are Stuck Despite Record AWS Growth

Despite Q1 results that CFO Brian Olsavsky framed around a 13.1% operating margin, the highest ever, shares have given back recent gains. Momentum has cooled. The MACD histogram flipped negative on May 11 and deepened to -2.0243 by May 15, while RSI dropped from 81.1 on May 6 to 58.6 in nine sessions.

The analyst who called NVIDIA in 2010 just named his top 10 stocks and Amazon wasn't one of them. Get them here FREE.

Two overhangs explain it. First, Berkshire Hathaway fully exited its Amazon position in Q1 2026, a headline that traveled. Second, free cash flow has collapsed under a $200 billion 2026 capex plan, with $43.2 billion spent in Q1 alone. With a beta of 1.468, AMZN amplifies every macro wobble.

Wall Street Sees Modest Upside. I Think They Are Too Conservative

The consensus target sits at $311.55, with 14 Strong Buys, 48 Buys, 5 Holds, and zero Sells among 67 analysts. That is bullish, but the price target feels stale. Quarterly EPS growth ran at 74.8% year over year and revenue at 16.6%. Yet consensus implies less than 18% upside from here.

The Street appears anchored to old growth assumptions before AWS reaccelerated and before the chips business hit a $50 billion implied standalone run rate. With $364 billion in AWS backlog and Trainium nearly fully subscribed through Trainium3, the operating leverage story has years left.

The Path to $375 Per Share

Reaching $375 from today's price of $264.14 requires a gain of 42%. With forward EPS of roughly $8.22 (derived from the 32 forward P/E), a price of $375 implies a forward P/E of 46x. The consensus target of $311.55 implies roughly 38x, meaning the bold target requires about 7.7x of additional multiple expansion. Can Amazon earn that? Yes, if three things keep working: