Amazon's OpenAI deal will drive AI revenue growth, stock upside, Citi says
By Liz Napolitano
Published on March 25, 2026.
Amazon's partnership with OpenAI, which includes a pledge to invest up to $50 billion in AI, is expected to drive AI revenue growth and stock upside, according to Citi Research. The bank has raised its price target on Amazon to $285 per share from $265, suggesting about 27% upside. The deal makes Amazon Web Services the exclusive third-party cloud distributor for OpenAI Frontier, an enterprise platform for building, deploying and managing AI agents. Citi expects AWS revenue growth to rise 28% year-over-year in the first quarter of 2026 and 29% in 2026, before accelerating to 37% in 2025 due to the Anthropic and OpenAi ramp up. However, the bank acknowledges concerns about return on investment, competition, and limited visibility, but maintains its buy rating.
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