Mizuho Securities reaffirmed Amazon.com (NASDAQ:AMZN) as their Top Pick, highlighting an uptick in the AWS division’s sales momentum due to more frequent executive business center meetings and the earlier conclusion of on-premises data center agreements. Deals typically close 60 days after such meetings, marking a reduction from the previous 90-day norm.
Additionally, AWS clients are reportedly concluding their on-premises contracts quicker by making advance payments, indicating swifter cloud transitions and increased sales activity. Mizuho observed a 2024 budget orientation towards infrastructure investments by Amazon, hinting at an expedited shift of operations to AWS. This is partly driven by AWS users prioritizing the transfer of substantial data volumes to the cloud for long-term generative AI applications and upgrading existing cloud data for enhanced Gen-AI compatibility. The firm anticipates AWS expenditure to grow by 20% year-over-year, reverting to traditional consumption patterns.