With the ongoing race for artificial intelligence supremacy, the Amazon (AMZN) stock target has gotten a boost, as it could be set to become an AI force in the coming year. Indeed, the Mizuho financial group has raised its target for the e-commerce juggernaut from $240 to $260 based on its potential in the emerging technology.

The buzz around the tech space has been a massive reason why Nvidia (NVDA) has dominated 2024. The chipmaker is crucial to its ongoing development and has become a Wall Street favorite. Many of those same principles could apply to a rising Amazon over the course of next year.

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Amazon to Dominate 2025? Generative AI Could Drive Surge

As a plethora of companies compete for AI supremacy, 2025 is poised to be a monumental year. The stock market has seen artificial intelligence emerge as a key drive of investment. Moreover, companies like Apple (APPL), Microsoft (MSFT), and Alphabet (GOOGL) are all looking to continue making monumental shifts toward that potential.

Yet one has stood out as a possible outlier in terms of growth in the sector next year. Indeed, Amazon (AMZN) has seen its stock price target get a boost as there are beliefs it could become an AI force over the next several years. Specifically. Mizuho discussed its Generative AI application and the ongoing growth of Amazon Web Services (AWS), its cloud computing business.

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The firm noted that AWS is looking to address present difficulties when utilizing generative AI solutions. Those solutions are poised to be the launching pad for notable growth next year. Additionally, AWS is targeting a reduction in costs, simplification of app development, and advanced AI-agent functions as key areas of focus for next year.

The company’s Trainium2 chip is expected to reduce capacity by 40%. Its presence should provide a more affordable option for the scaling of generative AI products. Conversely, its Bedrock platform is set to offer new tools that will automate coding, data integration, and more.

These avenues will only increase these use cases for AI in the coming year. Moreover, they will shift the sentiment of Amazon as a key player in the growing space. Although completion is immense, its advancements should stand alongside anything that major corporations are doing in the space in 2025.