Nvidia Replaces Amazon in Dow Jones, Surges 38.9% in 2025

Written by Emily J. Thompson, Senior Investment Analyst

AMZN+0.39%

NVDA-0.44%

Source: Fool

Updated: 5h ago

0mins

Source: Fool

Dow Jones Changes: In 2024, Nvidia and Amazon were added to the Dow Jones Industrial Average, replacing Intel and Walgreens Boots Alliance, highlighting the market's favor towards tech stocks, particularly in the AI sector.
Performance Comparison: In 2025, Nvidia's stock surged by 38.9%, while Amazon only rose by 5.2%, making it the worst performer among the 'Magnificent Seven', reflecting stronger investor confidence in Nvidia's growth prospects.
AWS Dependency: Amazon's latest quarter showed a mere 4.1% operating margin in its non-AWS business, while AWS boasts a 35.6% margin, making it a cash cow; however, slowing growth in AWS could impact Amazon's overall performance.
Nvidia's Growth Potential: Approximately 90% of Nvidia's revenue comes from data center sales, and the newly launched Rubin architecture is set to drive innovation in AI, robotics, and autonomous driving, likely enhancing its market competitiveness and profitability.

AMZN

$239.12+Infinity%1D

Analyst Views on AMZN

Wall Street analysts forecast AMZN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AMZN is 294.71 USD with a low forecast of 250.00 USD and a high forecast of 340.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

43 Analyst Rating

40 Buy

3 Hold

0 Sell

Strong Buy

Current: 238.180

Low

250.00

Averages

294.71

High

340.00

Current: 238.180

Low

250.00

Averages

294.71

High

340.00

Cantor Fitzgerald

Overweight

downgrade

$315 -> $260

Al Analysis

2026-01-08

Reason

Cantor Fitzgerald

Price Target

$315 -> $260

Al Analysis

2026-01-08

downgrade

Overweight

Reason

Cantor Fitzgerald lowered the firm's price target on Amazon.com to $260 from $315 and keeps an Overweight rating on the shares. Despite lingering macro concerns, the outlook for Global Internet stocks into 2026 is increasingly positive as AI enters a "Synergy" phase that should drive accelerating revenue growth, improved value capture, and clearer long-term returns on capex, the analyst tells investors in a research note. With valuations still about 20% below medium-term ranges despite 2025 outperformance, the group is positioned to outperform in 2026 amid positive estimate revisions and improving sentiment, Cantor says.

Jefferies

David Hayes

Buy

downgrade

2026-01-06

Reason

Jefferies

David Hayes

Price Target

2026-01-06

downgrade

Buy

Reason

Jefferies analyst David Hayes lowered the firm's price target on Puig Brands (PUGBY) to EUR 20.60 from EUR 21.30 and keeps a Buy rating on the shares. The firm considers the risks of a fading fragrance cycle, the implications of Charlotte Tilbury on Amazon (AMZN), and the prospects of an acquisition in skin care, the analyst tells investors in a research note. The firm added it remains bullish on the stock, but it requires consistent delivery to rebuild credibility.

Unlock Full Analyst Thesis， Get the complete breakdown of rating reason for AMZN

Unlock Now

Melius Research

Hold

Buy

upgrade

$135

2026-01-05

Reason

Melius Research

Price Target

$135

2026-01-05

upgrade

Hold

Buy

Reason

As previously reported, Melius Research upgraded Marvell (MRVL) to Buy from Hold with a $135 price target. Shares are down 11% from their recent intraday high, notes the analyst, who believes that Marvell's backlog is growing in custom silicon, with revenues expected to double in calendar year 2027 due to Microsoft's (MSFT) MAIA chip and several XPU-attach sockets ramping. Custom Microsoft internal silicon design capabilities trail AWS's (AMZN) Annapurna Labs, potentially creating room for a larger profit pool to accrue to external custom silicon providers like Marvell, the analyst tells investors.

Jefferies

NULL -> Buy

maintain

$275 -> $300

2026-01-05

Reason

Jefferies

Price Target

$275 -> $300

2026-01-05

maintain

NULL -> Buy

Reason

Jefferies raised the firm's price target on Amazon.com to $300 from $275 and keeps a Buy rating on the shares. The firm believes 2026 will be "another year of gradual AI monetization," but thinks more meaningful growth contribution and acceleration are needed to ease AI disintermediation fears, requiring more selectivity, the analyst tells investors in an outlook note on the software group. "While we remain confident that value will ultimately accrue to the software layer, investors may need to stay patient" with sector valuation back at historical average, the analyst added.

About AMZN

Amazon.com, Inc. provides a range of products and services to customers. The products offered through its stores include merchandise and content it has purchased for resale and products offered by third-party sellers. The Company’s segments include North America, International and Amazon Web Services (AWS). It serves consumers through its online and physical stores and focuses on selection, price, and convenience. Customers access its offerings through its websites, mobile apps, Alexa, devices, streaming, and physically visiting its stores. It also manufactures and sells electronic devices, including Kindle, Fire tablet, Fire TV, Echo, Ring, Blink, and eero, and develops and produces media content. It serves developers and enterprises of all sizes, including start-ups, government agencies, and academic institutions, through AWS, which offers a set of on-demand technology services, including compute, storage, database, analytics, and machine learning, and other services.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.