Citi has increased its price target for Amazon.com, citing expectations that the expansion of Amazon Web Services (AWS) will accelerate due to growing demand for artificial intelligence infrastructure.

The firm maintained its "Buy" rating on the stock and raised the target price from $265 to $285. This adjustment follows analysts' upward revision of AWS revenue forecasts, based on agreements Amazon has reached with OpenAI, Anthropic, and Nvidia.

Citi now projects that AWS sales will increase by 28% year-over-year in the first quarter of 2026, grow 29% for the full year, and rise 37% in 2027. Analysts believe AI-related workloads will contribute approximately 58% of new AWS revenue in 2026, increasing to 72% in 2027.

Anthropic alone is expected to generate about $18 billion in revenue for AWS in 2026 and $31 billion in 2027. OpenAI may contribute $6 billion and $18 billion during the same periods. Long-term infrastructure agreements support these projections, such as AWS holding multi-billion dollar contracts related to AI training and computing power.

These forecasts indicate that a growing number of companies are leveraging cloud infrastructure to scale their AI models. AWS is well-positioned to benefit from both AI and traditional workloads. Investors will closely monitor the company's ability to expand capacity and achieve profitability, as these factors will significantly influence its future growth trajectory.