12:55 PM EST, 11/03/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
On November 3, AMZN and OpenAI announced a $38 billion multiyear agreement, under which AWS will supply compute capacity for OpenAI, including access to hundreds of thousands of NVIDIA GPUs. AMZN had alluded to this on its earnings call on October 30, noting that AWS's backlog of $200 billion excluded several unannounced deals that together would surpass the total deal volume for all of Q3. This partnership with OpenAI appears similar to Project Rainier, a large-scale AI compute cluster built for Anthropic, as AMZN seems to be creating tailored infrastructure for its biggest and most strategic customers. With AWS growth reaccelerating and AMZN beginning to better monetize capex, we believe AWS could post particularly strong growth in 2026, potentially in the mid-20% range. Overall, we think the market's perception of AMZN's competitiveness in AI is shifting quickly, and we are increasingly confident that growth can accelerate further as additional capacity comes online. We maintain a Strong Buy rating.