Analysts at Evercore ISI on January 5 reiterated an outperform rating for Amazon.com Inc and set a price target of $335. The research firm stated the e-commerce giant is well-positioned for growth, driven by its AI-powered shopping assistant named Rufus.
Evercore ISI expects Rufus and other AI commerce features to bolster Amazon's retail gross merchandise volume by 4.44% by 2028. More than 250 million customers used the generative AI-powered conversational shopping assistant last year alone. This increased use led to a $10 billion rise in gross merchandise volume.
The firm noted that 60% of customers who use Rufus often complete a purchase, thereby strengthening the company's gross merchandise volume. Its use is anticipated to grow with the rollout of additional AI features, including AutoBuy and Predicting Bundling. Evercore ISI also expects Rufus to enhance Amazon's ad revenue by about $4 billion by 2028, as AI shopping helps guide and extract greater intent.
Meanwhile, on January 7, Amazon's cloud unit entered into a strategic partnership with Infosys to develop more enterprise services using generative artificial intelligence. The partnership will integrate Topaz AI services with Amazon Web Services AI assistant to offer comprehensive gen AI services to companies.