Amazon.com Inc.( $AMZN) and OpenAI Deal Reignites AI Momentum

Amazon.com Inc. (NASDAQ: AMZN) gained 1.77% to close at $233.22 as investors reacted to its landmark $38 billion cloud deal with OpenAI. The agreement gives AWS a pivotal role in powering OpenAI’s future models, marking one of Amazon’s most significant AI infrastructure wins to date. The deal spans seven years and includes access to large-scale Nvidia GPU clusters—an essential component for training and deploying advanced generative AI models.

The partnership comes as Amazon accelerates its push to re-establish AWS leadership in the competitive AI cloud segment. For years, OpenAI relied almost exclusively on Microsoft Azure. The shift signals a broadening of OpenAI’s compute strategy and reinforces Amazon’s long-term commitment to expanding its high-performance AI capabilities. AWS leadership noted that its infrastructure is specifically optimized to support demanding AI workloads at global scale, while OpenAI called the partnership a meaningful addition to the broader compute ecosystem.

Strong fundamentals support the bullish outlook. Amazon’s Q3 results highlighted renewed AWS momentum, with cloud growth once again becoming a focal point of investor confidence. AWS remains Amazon's most profitable segment, and securing OpenAI positions it more competitively against Microsoft, Google Cloud, and rising GPU-focused providers.

Long-term performance metrics also reinforce Amazon’s resilience. While the stock is up just 6.30% year-to-date, its three-year return of 148% significantly outpaces the S&P 500. Amazon continues to invest aggressively in logistics automation, advertising, robotics, and AI-driven cloud capabilities—areas expected to drive sustained revenue expansion.

Technical Analysis

AMZN remains bullish, currently trading at $233.22. The chart shows price respecting an ascending trendline, offering structural support near $190–200. A key resistance zone sits near $258, the previous swing high. A breakout above this level could open the path toward $260+. Support remains at $200, with deeper support around $185 if retracement occurs.