The US stock giant Amazon is now eyeing a new sector. The retail behemoth is planning to enter the nuclear power sector, eying the arena with great care and contemplation. The new domain may significantly bolster Amazon stock prices, delivering compact returns. But will this partnership help AMZN stock soar to $265?
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AMZN Goes Nuclear
The world is betting big on AI, and Amazon is no exception. The firm is now eyeing the nuclear sector to help develop small modular reactors to sustain its AI boom.
Amazon Web Services recently announced its plan to explore the nuclear sector by signing a contract with Dominion Energy, Virginia’s utility company. As AWS explores new horizons in AI, the firm needs clean energy resources to bolster its AI products and services, pivoting towards the nuclear sector to help generate possible solutions.
Under the newly signed contract, Dominion Energy will help the firm explore and develop small modular reactors, thereby achieving its AI-centric power initiatives.
Apart from Amazon, Google and Microsoft are also making plans to explore the nuclear domain to strengthen AI-centric operations by offering zero-carbon emissions solutions.
“Nuclear is a safe source of carbon-free energy that can help power our operations and meet the growing demands of our customers. While helping us progress toward our Climate Pledge commitment to be net-zero carbon across our operations by 2040. One of the fastest ways to address climate change is by transitioning our society to carbon-free energy sources. And nuclear energy is both carbon-free and able to scale—which is why it’s an important area of investment for Amazon. Our agreements will encourage the construction of new nuclear technologies that will generate energy for decades to come.” As stated by Matt Garman, CEO of AWS.
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AMZN Stock Forecast: Will It Avail A New High Soon?
With Amazon entering the sector, analysts are already predicting new price forecasts for its stock. AMZN is currently trading at $186, with chances of it hitting a new price target of $224 in the next 12 months.
“Based on 47 Wall Street analysts offering 12-month price targets for Amazon in the last 3 months. The average price target is $224.38 with a high forecast of $265.00 and a low forecast of $183.00. The average price target represents a 20.06% change from the last price of $186.89. Amazon’s analyst rating consensus is a strong buy. This is based on the ratings of 47 Wall Street analysts.”
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