Analyst firm BNP Paribas gives 'Outperform' rating to Amazon stock; tells investors don't go by concerns on ...
BNP Paribas has maintained an “Outperform” rating on Amazon stock , saying concerns over the company’s rising spending on artificial intelligence (AI) are “overdone.” In a note released on April 8, BNP Paribas analyst Nick Jones said Amazon’s heavy investment in AI and cloud infrastructure is both “appropriate and necessary” given the growing demand and long-term opportunity. The comments were reported by MarketWatch. In the note, Jones advised investors not to focus only on how much Amazon is spending, but instead look at its backlog-to-capex ratio — a measure that compares contracted demand with infrastructure spending. According to him, Amazon’s strong backlog means the company can quickly turn new capacity into revenue.
He also pointed to Amazon’s improving productivity. The company’s revenue per employee has increased significantly, rising from $319,600 in 2022 to nearly $455,000 in 2025, based on company filings. Jones said this reflects efficiency gains as Amazon shifts more towards digital operations and AI-driven systems. BNP Paribas has kept its positive outlook on Amazon stock and expects a potential upside of around 50% from current levels.
AI spending seen as long-term bet
Amazon, along with other major tech companies like Google and Meta, has been investing heavily in AI infrastructure, including large-scale data centres. These investments come as demand for cloud services and AI tools continues to grow.
Amazon’s Chief Financial Officer Brian Olsavsky has previously said that new AWS capacity is being monetised quickly. CEO Andy Jassy has also talked about the company's plan to spend up to $200 billion in capital expenditure by 2026, with most of it going towards AWS and AI infrastructure.
The technology sector has broadly faced pressure in recent months due to global economic concerns. However, some analysts believe the current situation could present a buying opportunity.
Goldman Sachs has said that major tech companies, including Amazon, could benefit if market conditions shift. The firm noted that while geopolitical tensions have impacted tech stocks, a slowdown in rate hikes could make the sector more attractive to investors.
He also pointed to Amazon’s improving productivity. The company’s revenue per employee has increased significantly, rising from $319,600 in 2022 to nearly $455,000 in 2025, based on company filings. Jones said this reflects efficiency gains as Amazon shifts more towards digital operations and AI-driven systems. BNP Paribas has kept its positive outlook on Amazon stock and expects a potential upside of around 50% from current levels.
AI spending seen as long-term bet
Amazon, along with other major tech companies like Google and Meta, has been investing heavily in AI infrastructure, including large-scale data centres. These investments come as demand for cloud services and AI tools continues to grow.
Amazon’s Chief Financial Officer Brian Olsavsky has previously said that new AWS capacity is being monetised quickly. CEO Andy Jassy has also talked about the company's plan to spend up to $200 billion in capital expenditure by 2026, with most of it going towards AWS and AI infrastructure.
The technology sector has broadly faced pressure in recent months due to global economic concerns. However, some analysts believe the current situation could present a buying opportunity.
Goldman Sachs has said that major tech companies, including Amazon, could benefit if market conditions shift. The firm noted that while geopolitical tensions have impacted tech stocks, a slowdown in rate hikes could make the sector more attractive to investors.
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