Amazon (AMZN) Stock: Top Investor Calls It a Bargain as OpenAI Chip Deal Emerges
The post Amazon (AMZN) Stock: Top Investor Calls It a Bargain as OpenAI Chip Deal Emerges appeared on BitcoinEthereumNews.com.
TLDR Amazon stock is trading flat for 2025 despite strong business performance, with a Forward P/E around 30x that’s lower than Walmart and Costco Top investor Geoffrey Seiler calls Amazon stock a bargain, pointing to 11% North American e-commerce growth and 20% AWS revenue growth Amazon is in talks with OpenAI for a potential $10 billion investment and a deal for OpenAI to use Amazon’s Trainium chips Amazon’s custom Trainium chips may soon compete directly with Google TPUs and Nvidia GPUs in real AI workloads Wall Street analysts give Amazon a Strong Buy rating with 44 Buy ratings and an average price target of $296.12, implying 30%+ upside Amazon stock has been stuck in neutral this year. Shares are roughly flat for 2025 while other tech giants have racked up gains. But according to top investor Geoffrey Seiler, that’s creating an opportunity. His reasoning is pretty straightforward. The company is performing well on multiple fronts, yet the market isn’t giving it much credit. Amazon.com, Inc., AMZN The numbers back up his optimism. North American e-commerce sales jumped 11% last quarter. Amazon Web Services grew revenue by 20% year-over-year. These aren’t the metrics of a company that should be treading water. The valuation story gets more interesting when you zoom out. Amazon’s Forward P/E sits around 30x. Compare that to Walmart and Costco, both sporting multiples above 40x. In other words, the market is willing to pay more for traditional retailers than for Amazon’s combination of e-commerce dominance and cloud computing leadership. Seiler points to Amazon’s massive AI infrastructure spending as another growth driver. The company continues building out data center capacity to meet rising AI demand. That investment is already paying off in AWS growth numbers. OpenAI Partnership Could Boost Chip Strategy Fresh news this week added another wrinkle to…
