Amazon stock (NASDAQ: AMZN) opened Friday’s trading session at $244. AMZN rebounded in value in Q2 of this year, going from a low of $199 to a high of $275. The e-commerce giant is currently facing correction, as the broader tech industry is under the lens for its massive capex. On the heels of the ongoing turbulence, global investment bank Jefferies maintained its buy rating for AMZN with a new price prediction.
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What is Jefferies’ Price Prediction For Amazon Stock? (AMZN)
Brent Thill, the equity analyst at Jefferies, wrote in a note to clients on June 18 that Amazon stock could begin its upward tick. The leading analyst predicted that AMZN could reach a high of $320 next. That’s a possibility of earning a profit of approximately $75 per share. The analyst highlighted that the leading tech titan could surge close to 30% from its current price.
Therefore, an investment of $1,000 could turn into $1,300 if the price prediction turns out to be accurate. Accumulating AMZN below the $250 range and taking an entry position during the dips can widen the window for better gains. Amazon stock can be on your must-watch list as the equity has bigger potential. Buying AMZN at its low can boost the prospects of earning more than the predicted target.
What Can Fuel the Surge?
Amazon is currently in talks to sell its custom-made AI chips for other firms to build their data centers. This would undercut Nvidia’s position by offering an alternative in a key expansion effort. Amazon’s AI chief Peter DeSantis confirmed that the company is discussing selling its chips and has customers in the queue. However, he declined to name the potential customers. If the company attracts buyers, Amazon stock could soar in value, as it directly competes with industry leader Nvidia.