Zhitong Finance learned on Tuesday that a recent survey by Suitt Securities showed that Amazon's most important cloud computing department, Amazon Web Services (AWS), is accelerating its development. Amazon's stock has risen by more than 10.5% in the past month, pushing its valuation past $2 trillion. Suitt analyst James Lee said the survey was conducted in partnership with a 'leading' channel partner and showed accelerated sales cycles. Lee reiterated his 'shareholding' rating on Amazon and a target price of $240.

Lee added that the survey also showed that enterprise spending portfolios will remain largely unchanged this year, continuing to shift towards infrastructure, indicating a 'strong' pipeline for workload migration and database upgrades.

Finally, the survey also showed that generative AI projects are approaching a 'turning point,' with external models still six months away from commercial deployment. Lee therefore noted that spending on AWS this year should increase, with a year-on-year growth rate rising from the previous estimate of 20% to 22%, largely due to further improvements in core consumption and the end of cost optimization.