Should you sell your Amazon stock?

Tara Whittet · Writer
September 4, 2025 at 9:17am ADT 2 min read
Last updated on September 4, 2025 at 9:17am ADT

Roth Capital Markets analyst Rohit Kulkarni maintained a “Buy” rating and 12-month price target of $250.00 on Amazon.com (Amazon.com Stock Quote, Chart, News, Analysts, Financials NASDAQ:AMZN) in a Sept. 3 update, citing the impact of Anthropic’s latest funding round and Amazon Web Services’ AI infrastructure ambitions.

Anthropic, a leading AI lab, announced Sept. 2 it had raised $13-billion in a Series F equity financing at a $183-billion post-money valuation. Kulkarni estimates Amazon owns 15% to 19% of Anthropic, having invested $8-billion to date.

“This funding round sets up for potentially accelerating spending on AWS,” he said, noting Anthropic could spend as much as $5-billion on AWS in 2026 versus $1.5- to $2.0-billion in 2025. He added the round could also support upcoming announcements on Project Rainier, Amazon’s AI ultracluster.

“Anthropic signed a $4-billion multi-year commitment to spend on AWS in 2024,” he said. “With the latest funding round and expected uptick in ARR, we think Anthropic’s contribution to AWS’s 2026 revenues could be significant.”

By August 2025, Anthropic’s annual recurring revenue exceeded $5-billion, up from $1-billion at the start of the year, with Claude Code alone contributing $500-million.

Project Rainier, unveiled in December 2024, is designed to deliver five times more compute than Anthropic’s previous clusters using Amazon’s Trainium2 chips. Kulkarni said Rainier is already being deployed across U.S. sites, including a mega campus in Indiana, with full activation expected through 2025.

“Rainier is positioned to be among the world’s largest AI training supercomputers when complete, challenging Nvidia’s GPU dominance and offering more efficient, vertically integrated AI infrastructure,” he said.

Kulkarni said Amazon should generate $165.0-million in Adjusted EBITDA on $707.0-million of revenue in fiscal 2025, improving to $197.1-million on $777.7-million of revenue in 2026.

 

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Tara Whittet

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Tara Whittet is Senior Sales Manager at Cantech Letter.

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