Amazon (AMZN) stock is on the rise. Currently trading at $203, the stock could soon surge to $300, according to analysts, citing several reasons. The e-commerce company is one of the strongest within the Magnificent 7. Moreover, with the market’s worst days behind it this year, Amazon’s market cap has exploded, breaking through the $3 trillion mark.
While the stock has rallied from 2025 lows, AMZN shares are still down on the year by 7%. Experts suggest that this is a good time to buy the stock before it blows back up. One of Amazon’s biggest catalysts for growth is the performance of AWS. Amazon Web Services remains the largest cloud computing service in the world, with around a 30% market share. Revenue from the platform is also up year-over-year, adding approximately $29.3 billion last quarter, a 17% climb. However, AWS is a clear answer for how AMZN could climb. What other factors could play a part in the continued growth of Amazon stock?
Fewer Tariff Concerns
US tariffs hit the stock market hard in 2025, sending indexes and major US stocks down. Amazon was one of the many big-tech/e-commerce companies that saw shares plunge. However, those tariff concerns have since eased up, thanks to a temporary tariff pause.
The so-called “de minimis” tariff, however, was left in place (albeit with a reduction), but this is actually good for Amazon, as it primarily impacts Chinese competitors that are directly selling to U.S. customers, such as Temu and Shein. The risk, of course, is that this is just a temporary pause and the trade war picks back up down the road, harming AMZN stock once again.
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Better Margins
Additionally, Amazon has been seeing a nice improvement in its margins and profitability. Much of this is stemming from its use of AI. The company’s AI robots help in its fulfillment centers and can perform such tasks as lifting heavy objects, sorting, and carrying packages. Some robots also recognize damaged goods, preventing shipment. AI is also beneficial in helping Amazon’s e-commerce platform identify items that are frequently returned.
The use of AI has ultimately benefited Amazon’s margins. The company is using AI to both improve ad creation and deliver more relevant ads to consumers. One example of this is that it has developed a generative AI tool to help advertisers create AI-generated images for their sponsored ad campaigns. All this is leading to the company seeing strong operating leverage. North America’s operating income surged 16% in Q1, on only an 8% increase in revenue.
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Hard-to-Resist Price Point
Lastly, with Amazon (AMZN) stock being a magnificent-seven member, its current low prices compared to forecasts make it an attractive investment choice. AMZN still trades at one of its lowest valuations in its storied history despite its rebound in the past month. The company’s long-term prospects remain promising, and could send AMZN back to decade-highs in the coming year.