Citizens JMP analyst Andrew Boone remains bullish on both Amazon (AMZN) and Alphabet (GOOGL), but his latest comments highlight different AI opportunities for the two tech giants. Amazon is benefiting from continued demand for Nvidia (NVDA) GPUs through Amazon Web Services, while Google’s long-standing investment in custom AI chips could give it an advantage as the AI industry moves toward greater vertical integration.
Boone reiterated a Buy rating and $315 price target on AMZN, implying 20.7% upside potential. For Alphabet, Boone also maintained his Buy rating, but with a higher $515 price target, which implies 51.2% upside potential.
Boone is a five-star analyst on TipRanks, ranking #582 out of 12,501 analysts tracked. He has a 55% success rate and an average return per rating of 13.30%.
Amazon to Benefit from Nvidia GPUs
A key reason for Boone’s optimism is Amazon Web Services’ decision to commit to 2 million additional Nvidia (NVDA) GPUs for 2027-2028, on top of the more than 1 million GPUs previously announced. AWS is also adding its own Vera CPUs, Boone added. While Amazon has been developing custom AI chips, the additional Nvidia commitments highlight the continued demand for Nvidia hardware.
For Amazon, the commitment will help AWS meet rising AI demand and potentially drive higher cloud usage. It also supports Boone’s view that the market still needs Nvidia GPUs despite Amazon’s investment in custom chips such as Trainium.
Google’s Advantage in TPUs
Boone noted that Google has a head start in custom AI chips, and other frontier AI companies are now realizing why that matters. Google has been developing its own TPUs for years, giving it greater control over the hardware used for its AI workloads. The fact that Anthropic explored acquiring MatX, a startup founded by former Google TPU engineers, and OpenAI is developing its own AI chip shows that other frontier AI companies are now moving in the same direction.
Boone believes AI companies are increasingly looking to control more of the technology stack—from AI models and software to chips and data centers. In his view, Google’s early lead could give Alphabet an advantage in cost, performance, and infrastructure as AI computing demand continues to grow.
AMZN or GOOGL: Which Tech Stock Does Wall Street Prefer?
The TipRanks Stock Comparison Tool shows that Wall Street has assigned a Strong Buy consensus on both AMZN and GOOGL shares. However, Amazon’s average price target of $334.05 implies slightly higher upside potential over the next 12 months compared to Google’s average target. Amazon has also delivered stronger year-to-date gains.
