Amazon Poised for Higher Capital Expenditure for 2027 and Beyond, UBS Says

MT Newswires Live07-29 00:39

Amazon (AMZN) is poised for higher capital expenditure for 2027 and beyond in light on rising component prices as well as demand, UBS said in a Tuesday research note.

UBS said it has also made changes to its estimate for revenue from Amazon Web Services, accounting for Microsoft-backed (MSFT) OpenAI moving its initial use of Trainium chips out of Q4 and into early 2027, which shifts about $3 billion of revenue out of this year.

UBS further said it continues to believe that Wall Street is "undermodeling" the backlog and revenue growth prospects for AWS in H2 and even more so in 2027. UBS estimates 36% and 48% AWS revenue growth prospects in 2026 and 2027, compared with Wall Street view of 31% and 30%, respectively.

UBS lowered its price target to $305 from $333 and maintained its buy rating on the company's stock.

Price: 231.26, Change: -0.13, Percent Change: -0.06

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