According to analyst Brian White from Monness, Crespi, Hardt, Amazon's stock is likely to receive a boost from the growing relationship between Amazon Web Services (AWS) and Nvidia (NVDA). White's report highlights the recent "AI Woodstock" event by Nvidia, which demonstrated the rapid expansion of artificial intelligence, particularly in the enterprise sector. In his note to clients, White reiterated a buy rating for Amazon and set a share price target of 215. He believes that leading cloud service providers, including AWS, are well-positioned to benefit from the early-stage growth of generative AI projects. However, White also expressed a more cautious view on the AI hype and expects the market to become increasingly skeptical about exaggerated claims surrounding generative AI. This could lead to closer scrutiny from investors regarding enterprise software. Over the past year, Amazon has been actively establishing itself as a key player in enterprise-level investments in AI. Last week, Amazon and Nvidia announced several new collaborations, including making Nvidia's new AI computing platform, Blackwell, available through AWS.

Additionally, AWS will host Nvidia's DGX Cloud AI training software service, and the two companies will work together on cybersecurity and an AI supercomputer. Furthermore, they unveiled tools to assist companies in training AI models using their own data. These announcements build upon the existing partnership between Amazon and Nvidia, which was announced during Amazon Web Services' client conference in November. In addition to the AWS-Nvidia partnership, Nvidia's recent event also included partnership announcements with Microsoft, Alphabet, and Oracle, as each company competes for hosting the substantial computing power required for generative AI applications. While Amazon remains the dominant cloud infrastructure provider in terms of market share, Microsoft has been gaining market share in recent quarters. Brian White's note further mentions that he expects Amazon to continue capitalizing on the cloud, expanding its digital advertising business, innovating with AI, exploring healthcare opportunities, realizing the benefits of a regional fulfillment network, and leveraging a more streamlined cost structure. However, he also highlights potential risks such as regulatory challenges and potential economic struggles. On the stock market, Amazon's shares were slightly higher at 180. 07. The stock has seen a 20% increase so far this year and an 84% increase over the past 12 months.