Tech giant Amazon’s (NASDAQ:AMZN) cloud computing unit, Amazon Web Services (AWS), plans to invest 2.26 trillion yen ($15.24 billion) in Japan, particularly in the cities of Tokyo and Osaka, by 2027. With this investment, the company intends to expand its cloud computing infrastructure for AI services.
This investment is in addition to the 1.51 trillion yen that Amazon has spent from 2011 to 2022 to build up its cloud infrastructure in Japan. AWS’ Japanese clients for generative AI services include Asahi Group, Marubeni, and Nomura Holdings.
Amazon’s investment in Japan aligns with the country’s efforts to advance in AI, with Prime Minister Kishida engaging with tech leaders to discuss AI regulation and infrastructure.
Is Amazon a Buy, Sell, or Hold?
Analysts remain bullish about AMZN stock with a Strong Buy consensus rating based on 41 Buys. Over the past year, AMZN has soared by more than 60%, and the average AMZN price target of $184.66 implies an upside potential of 20.3% at current levels.
