Amazon.com, Inc. (NASDAQ:AMZN) is one of the Buzzing AI Stocks on Wall Street. On September 4, Barclays analyst Ross Sandler reiterated an Overweight rating on the stock with a $275.00 price target.

The firm looked at the math on how well Amazon Web Services is growing from AI workloads compared to non-AI workloads, with particular focus on Anthropic’s contribution to AWS revenue.

It revealed that currently, Anthropic is only adding an estimated 100 basis points to AWS growth in Q2 2025. However, once Claude 5 training and existing inference revenues kick in, it has the potential to increase to 400 basis points per quarter. This is, assuming most of the training continues on Anthropic.

While AWS is generating meaningful revenue from Anthropic, their tie-up looks a bit shaky. Moreover, AI adoption beyond a few big names is yet to materialize.

“Anthropic’s API business generates around $1.6B in inference revenue for AWS in 2025 as the start-up’s ARR ramps to $9B from $1B throughout the year. This also assumes that Anthropic hangs on to most of the AI IDE revenue flowing through its API business; the fact that Cursor flipped “default” to OpenAI’s GPT-5 API recently may challenge the sustainability of this revenue stream. There have also been some grumblings in the industry around accessing Anthropic models through AWS Bedrock, a sign that the AWS/Anthropic relationship could be fraying somewhat. All this horse trading is important as a few huge AI labs (OpenAI and Anthropic) are generating the bulk of AI revenue for the hyperscalers today, and the “broadening out” deployment stage has yet to really materialize in ’25, as noted on AMZN’s recent conference call.”

Amazon.com Inc. (AMZN) is an American technology company offering e-commerce, cloud computing, and other services, including digital streaming and artificial intelligence solutions.

While we acknowledge the potential of AMZN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.