Assessing Amazon.com (NasdaqGS:AMZN) Valuation After Major AI Chip And Cloud Deals With Meta And Anthropic

Amazon.com (AMZN) is back in the spotlight after securing a multiyear deal to supply Graviton5 chips to Meta Platforms, along with a deepened cloud partnership with Anthropic, each centered on large scale AI workloads.

See our latest analysis for Amazon.com.

The recent AI chip and cloud announcements come on top of a strong run, with a 30 day share price return of 32.43% and a 1 year total shareholder return of 39.68%, suggesting momentum has picked up again after earlier years of mixed performance.

If you are looking beyond Amazon's AI story, this is a good moment to see which other companies are riding similar themes through the 38 AI infrastructure stocks

With Amazon shares up 32.43% over 30 days and trading at US$263.99, yet screens still flagging an estimated 10.65% intrinsic discount, are you looking at an overexcited AI favorite, or at a market that is only now pricing in future growth?

Most Popular Narrative: 41.3% Undervalued

Amazon's most followed narrative sets a fair value of $450 per share versus the recent $263.99 close, framing today’s price as well below what that view considers justified.

Amazon is sacrificing short-term margins to secure long-duration dominance in AI infrastructure, advertising, and automated commerce. These investments are already working, and margins are positioned to inflect upward by the end of 2026.

Read the complete narrative.

Curious what sits under that $450 figure? The narrative leans on accelerating earnings, richer profit margins, and a future multiple usually reserved for market leaders.

Result: Fair Value of $450 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this thesis could be challenged if AI capex fails to translate into higher profitability, or if cloud and retail competition weakens pricing power.

Find out about the key risks to this Amazon.com narrative.

Next Steps

With both risks and rewards on the table, sentiment around Amazon is clearly split. Take a moment to review the details and weigh the 3 key rewards and 1 important warning sign

Looking for more investment ideas?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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