Citron Research has set a colossal price target of $300 for Amazon.com Inc. (NASDAQ:AMZN), representing 28% upside potential from current levels, driven by a hidden semiconductor empire that could soon rival the industry leader Nvidia Corp. (NASDAQ:NVDA).
A trillion-dollar threat to Nvidia
Following the publication of the letter to shareholders for 2025 from Amazon CEO, Andy JassyCitron Research has published a searing commentary on the tech giant’s explosive growth in artificial intelligence (AI) hardware.
The famous research firm said of Amazon that it was “the most serious threat ever to NVIDIA’s dominance in the semiconductor industry†.
According to Citron, Wall Street analysts have not at all understood the extent of Amazon’s work on custom integrated circuits. The firm noted that Amazon’s proprietary chip division is operating at a staggering pace of “$50 billion in independent revenue,†with double-digit growth.
Emphasizing this hidden value, Citron said: “This is another trillion-dollar company hidden inside $AMZN. This does not exist in any sell-side analyst model. None. “
Potato Chips vs. AI Chips
Citron argued that the market had spent years wrongly punishing Amazon for its large investments while rewarding stable but low-growth retail competitors like Walmart Inc. (NASDAQ:WMT).
The firm highlighted a huge mismatch in valuation: Walmart trades at 45 times earnings for revenue growth of just 4%, while Amazon sits at just 26 times forward earnings.
“Walmart sells potato chips. 45 times profits. Amazon sells AI chips. 26 times forward earnings,” Citron said, strikingly summarizing the market divergence. “The chips are sold out. The multiples must tip.â€
Amazon confirms the boom
Citron’s bullish target directly reflects the revelations contained in Jassy’s recently published letter to shareholders. The latter confirmed that Amazon’s custom AI integrated circuits, primarily its Trainium and Graviton processors, are experiencing unprecedented global demand.
“Our chip business is growing, it is changing the economic structure of AWS and will be much bigger than most people think,†Jassy wrote to shareholders.
He revealed that the Trainium2 is largely sold out, and that unreleased iterations like the Trainium4 are already massively booked. Confirming Citron’s calculations, Jassy noted that if Amazon operated as a traditional semiconductor manufacturer selling to third parties, “our annual revenue would be around $50 billion.”
Modest progress for Amazon in 2026
Following the relief rally, AMZN stock has gained 1.23% since the start of the year, while the Nasdaq 100 index has fallen 0.49% over the same period. Additionally, the stock has gained 2.60% over the past six months and 22.27% over the year.
On Thursday, the stock closed up 5.60%, at $233.65. Les Edge Stock Rankings de Benzinga indicate that AMZN maintains a weak price trend in the medium term, but strong trends in the short and long term, with a strong growth score.
Warning : This content was partially produced using AI tools and was edited and published by Benzinga editors.
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