Evercore ISI raises price outlook for Amazon amid AI sales boost

Evercore ISI analyst Mark Mahaney just handed Amazon one of the more bullish notes on Wall Street, raising his price target to $335 and projecting that AI-powered shopping tools could reshape the company’s revenue trajectory over the next two years.

The catalyst is Rufus, Amazon’s AI shopping assistant, which Mahaney believes is quietly becoming one of the most consequential product launches in the company’s history. More than 250 million customers used the tool in 2025, and those users were 60% more likely to actually buy something compared to shoppers who didn’t use it.

The Rufus effect, by the numbers

In his May 1 note, Mahaney maintained an Outperform rating on AMZN and laid out a financial roadmap that reads like an AI bull’s wish list. Rufus contributed roughly $10 billion in incremental gross merchandise value last year alone.

By 2028, Evercore estimates that Rufus and related AI features could collectively add up to $56 billion to Amazon’s retail GMV. That represents a 4.4% increase to the company’s total retail merchandise volume.

The revenue math cascades from there. Mahaney projects AI-driven commerce could generate up to $31 billion in additional total revenue, representing a 3% bump. Perhaps more importantly for margin-conscious investors, the analyst sees roughly $6.8 billion in incremental operating income, a 4.6% lift.

Rufus launched in beta back in February 2024, rolled out to all US customers by mid-2024, and has since expanded internationally.

Why Amazon’s AI bet looks different from everyone else’s

Amazon CEO Andy Jassy has pointed to increasing traction with Rufus among users, which tracks with Evercore’s data. The assistant helps shoppers compare products, answer specific questions about items, and navigate Amazon’s sprawling catalog more efficiently.

This also dovetails with momentum at Amazon Web Services. Evercore had already raised its price target for AMZN to $315 just days before the Rufus-focused note, citing strong quarterly results and AWS growth. The jump to $335 reflects the added conviction that AI isn’t just powering Amazon’s cloud business, it’s transforming the core retail operation too.

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