Amazon Stock Eyes $335 Target as It Explores $7B Decart Deal

• Amazon (AMZN) stock in focus as it is in talks to buy Decart for around $7 billion, potentially strengthening its Trainium AI chip capabilities
• Telsey maintained its $335 Amazon stock target, implying roughly 27.7% upside from Friday’s $262.43 close
• A hypothetical $500 investment grew to $579.64 in Amazon versus $552.99 in Alphabet over the tool’s 2026 comparison period

Amazon (AMZN) stock heads into Monday with a potential acquisition that could give its AI chip business more muscle. The company is discussing the acquisition of Decart. The startup’s appeal goes beyond its video models. Its software helps developers move between processors, addressing a practical challenge for Amazon. It is getting customers to run more demanding AI workloads on its own hardware.

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What Would Amazon Get From Decart?

The potential Decart acquisition could be worth around $7 billion. Talks remain ongoing, and both the firms are yet to officially confirm this update. Decart was valued at nearly $4 billion in May, putting the reported purchase price roughly 75% above that valuation.

The Amazon and Decart talks follow an existing technical relationship. AWS gave the startup early access to Trainium3 in 2025, according to reports. On AWS’s customer page, Decart CEO Dean Leitersdorf says early testing delivered up to four times the video frame throughput and twice the cost efficiency of leading GPUs. Latency fell from 40 milliseconds to 10 milliseconds. Those are company-reported results for its video models, rather than a benchmark for every AI workload.

Decart’s optimization software already spans Nvidia chips, AWS Trainium and Google TPUs. That expertise could help Amazon make its hardware easier to adopt, giving customers another reason to choose AWS for AI computing.

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Telsey Keeps Its $335 Amazon Stock Target

Retail remains another part of the investment case. Telsey reiterated its Outperform rating and $335 target on October 9 after Amazon’s October 6–7 Prime Big Deal Days event.

The firm’s initial assessment was positive, pointing to attractive deals, brand relationships, and fast shipping as support for holiday shopping. It was reported that Amazon’s Ask Alexa shopping assistant also helped customers review prices and find products.

AMZN stock closed Friday at $262.43, up 3.29%. This move preceded Sunday’s acquisition report. From Friday’s close, Telsey’s target implies approximately 27.7% upside.

Amazon Leads Alphabet Stock in Year-to-Date Returns

Alphabet offers a useful comparison because Google competes with AWS and develops its own AI processors. MarketCapOf’s January 1–October 12 comparison shows a hypothetical $500 investment growing to $579.64 in Amazon stock, versus $552.99 in Alphabet stock. Those figures represent gains of 15.93% and 10.60%, respectively.

Amazon comes out $26.65 ahead. The next question is whether its spending on AI can produce enough additional business to widen that lead.

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