Citron Research has set a massive $300 price target for Amazon.com Inc. (NASDAQ:AMZN), projecting 28% upside from current levels, citing a hidden semiconductor empire that could soon rival the industry leader Nvidia Corp. (NASDAQ:NVDA).
‘Trillion-Dollar’ Threat To Nvidia
Following the release of Amazon CEO Andy Jassy‘s 2025 shareholder letter, Citron Research published a blistering market commentary on the tech giant’s explosive growth in artificial intelligence (AI) hardware.
The renowned research firm declared Amazon “the most serious threat to NVIDIA’s semiconductor dominance ever created.”
According to Citron, Wall Street analysts have completely missed the sheer magnitude of Amazon’s custom silicon efforts. The firm highlighted that Amazon’s proprietary chip division operates at a staggering “$50 billion standalone revenue run rate,” featuring triple-digit growth.
Emphasizing this hidden value, Citron noted, “This is another trillion dollar company hidden inside $AMZN. This does not exist in a single sell side model. Not one.”
Potato Chips Vs. AI Chips
Citron argued that the market spent years wrongly punishing Amazon for heavy capital expenditures while rewarding stable, low-growth retail competitors like Walmart Inc. (NASDAQ:WMT).
The firm pointed out a glaring valuation mismatch: Walmart trades at 45x earnings for a mere 4% revenue growth, while Amazon sits at just 26x forward earnings.
“Walmart sells potato chips. 45x earnings. Amazon sells AI chips. 26x forward earnings,” Citron stated, vividly summarizing the market discrepancy. “The chips are sold out. The multiples have to flip.”
Amazon Confirms The Boom
Citron’s bullish target directly mirrors revelations from Jassy’s newly released shareholder letter. Jassy confirmed that Amazon‘s custom AI silicon, primarily its Trainium and Graviton processors, is experiencing unprecedented global demand.
“Our chips business is on fire, changes the economics for AWS, and will be much larger than most think,” Jassy wrote to shareholders.
He revealed that Trainium2 is largely sold out, and unreleased iterations like Trainium4 are already seeing massive reservations. Confirming Citron’s math, Jassy noted that if Amazon operated as a traditional semiconductor manufacturer selling to third parties, “our annual run rate would be ~$50 billion.”
Amazon Edges Up In 2026
Following the relief rally, AMZN stock is now up 1.23% year-to-date as the Nasdaq 100 index remains down 0.49% in the same period. Furthermore, the stock was higher by 2.60% in the last six months and 22.27% over the year.
The stock closed Thursday 5.60% higher at $233.65 apiece. Benzinga’s Edge Stock Rankings indicate that AMZN maintains a weak price trend in the medium term but strong trends in the short and long terms, with a solid growth score.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: bluestork / Shutterstock
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