$AMZN Mizuho

(1) We see an accelerated sales cycle from increased demand of ECB meetings and incremental exits of data center contracts;

(2) Category spending mix remained mostly unchanged for FY24, with mix shift to infrastructure, suggesting a strong pipeline for workload migration and database upgrades. As a result, the survey calls for spending forecast for FY24 to rise from 20% to 22% YoY growth due to further improvements in core consumption and the complete offset in cost optimization.

(3) Gen-AI projects are nearing an inflection point, with external-facing models 6 months away from commercial deployments. With that in mind, we have increased conviction of AWS acceleration and our above-the-Street revenue growth forecast of 20%. Maintain AMZN as a Top Pick with PT of $240