09:12 AM EST, 12/06/2024 (MT Newswires) -- Amazon.com's ( AMZN ) Amazon Web Services is innovating at an encouraging pace, Wedbush Securities said in a review of the company's annual AWS re:Invent conference.

The firm said in a note Thursday that it came away from the four-day event "with increased conviction in the trajectory of AWS growth and the health of Amazon's ( AMZN ) competitive positioning relative to peers."

Wedbush analysts, including Daniel Ives, said a key takeaway from the event was that the Street likely underappreciates the competitiveness of AWS' proprietary artificial intelligence infrastructure.

Other takeaways were that demand is strong across all three layers of the generative AI stack and cost optimization for enterprises remains a key goal for Amazon ( AMZN ), the analysts said.

The firm said it continues to expect Q4 AWS year-over-year growth of 20%, compared with consensus expectations for 19.3% growth.

Wedbush maintained an outperform rating on the stock with a $250 price target.