Amazon Shares Surge to Record Highs on AI and Cloud Momentum

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Amazon's stock delivered a powerful performance on Wall Street this Tuesday, climbing more than 3.6% and helping propel the Dow Jones Industrial Average to a fresh all-time peak. The rally was fueled by a trio of positive developments: the public launch of new artificial intelligence products, a significant cloud computing partnership, and a wave of upgraded price targets from financial analysts.

Not all news was positive for the e-commerce giant. On Monday, U.S. District Judge Robert Lasnik denied a motion by Amazon to dismiss a class-action lawsuit alleging price gouging. The suit claims the company inflated prices for masks and toilet paper by over 1,000% at times between January 2020 and October 2022. The judge found sufficient evidence that consumers lacked alternatives during that period, allowing the case to proceed. For now, however, investors appear largely focused on the company's growth narrative, sidelining these legal risks.

Analyst Sentiment Turns Bullish

The market's optimism was echoed by several research firms. Bank of America reaffirmed its Buy rating, setting a $303 price target, with analyst Justin Post highlighting the potential of the new Alexa+ platform. Jefferies also issued a $300 target, citing an acceleration in AWS growth and positive AI contributions. Evercore ISI maintained an even more bullish stance with a $335 target. Collectively, analysts see an upside potential exceeding 20% for Amazon's equity.

AI Expansion: Alexa+ Enters the Fray

At the CES 2026 trade show in Las Vegas, Amazon unveiled its latest AI initiative, taking the enhanced "Alexa+" voice assistant public as a web application for early-access users. This move positions the service as a direct competitor to AI chatbots like ChatGPT and Gemini.

The company's strategy extends beyond software, integrating Alexa+ into third-party hardware. Partnerships will embed the AI in the BMW iX3, Samsung Smart TVs, and even Bosch's 800-series coffee machines. Amazon reports the strategy is already yielding results: users of Alexa+ are engaging in twice as many conversations and making three times the number of purchases compared to the standard version.

AWS Secures Key Autonomous Vehicle Partnership

Alongside its consumer-facing AI news, Amazon Web Services (AWS) fortified its industrial position. The cloud division announced an expanded collaboration with German supplier Aumovio, making AWS the preferred cloud partner for the commercial deployment of Aurora Innovation's driverless trucks.

AWS will provide the computational power required to process the vast data streams generated by Level 4 autonomous systems. The market response was decisive: while Amazon shares advanced, Aurora Innovation's stock jumped over 8%.

Technically, the stock's breakthrough above the $240 level has charted a potential path toward its previous record high near $260, with investor attention firmly fixed on Amazon's dual leadership in artificial intelligence and cloud infrastructure.