Top tech analyst says people are buying more things on Amazon because of AI. He raised his price outlook as a result
Amazon.com could rally as wider AI adoption drives up sales on its online shopping platform, per Evercore ISI.
TL;DR
- Evercore ISI predicts Amazon's stock will rally as AI drives consumers to its platform.
- A survey found 57% of Alexa AI users bought products they were unaware of.
- Agentic AI refers to AI tools that can perform tasks like product discovery and purchases without human help.
- Amazon has 92% usage penetration among surveyed online shoppers, significantly higher than Walmart's 58%.
- Alexa for Shopping is seen as an accelerant, with 36% of survey participants reporting increased purchases due to AI integration.
- Evercore ISI raised its price target on Amazon shares to $355, implying a 40% upside.
- The firm's call aligns with a strong consensus on Wall Street, with most analysts rating Amazon a buy or strong buy.
- Amazon shares have already seen significant gains in the past six months.