11:58 AM EST, 11/03/2025 (MT Newswires) -- Amazon.com's ( AMZN ) $38 billion multiyear agreement to provide OpenAI with EC2 UltraServers is a validation of Amazon Web Services' strategy and strengthens the cloud provider's demand outlook, Wedbush Securities said in a note Monday.

The firm said OpenAI will initially run on existing AWS infrastructure with planned capacity coming online by the end of 2026.

"We think momentum will continue for the segment, and we highlight that AWS growth on a two-year stacked basis has accelerated sequentially over the last five quarters," Wedbush said.

Wedbush said the new deal builds on Amazon's ( AMZN ) current partnership with Anthropic and underscores growing demand for artificial intelligence infrastructure.

The firm said the stock's current valuation looks attractive with potential for multiple expansion.

Wedbush reiterated its outperform rating on Amazon.com ( AMZN ) and raised its price target to $340 from $330.

Shares of Amazon.com ( AMZN ) were up 4.5% in recent Monday trading.

Price: 255.29, Change: +11.07, Percent Change: +4.53