Despite typical short-term fluctuations, the stock markets have seen significant increases this year. As we approach the end of Q3, the S&P 500 has risen by 13%, while the technology-focused NASDAQ has increased by 16.5%. These gains reflect a rally that has remained strong over time.
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Expectations are shifting towards continued US economic expansion in the upcoming quarters. This projection, combined with the ongoing bull market, has Scott Wren, a senior global market strategist at Wells Fargo, in a positive mood.
“TariffSo far, the impacts have been smaller than many anticipated, and the job market is performing better than expected… Companies are not significantly hiring, but they are also not laying off many employees. Additionally, consumer spending has remained stronger than some analysts had forecasted, as indicated by the August Retail Sales report. Therefore, assuming all other factors remain constant and considering the improved growth expectations, it is logical that earnings forecasts for the S&P 500 Index (SPX) have also increased. Our projections for economic growth and corporate earnings this year and next are also being revised upward,” Wren observed.
This position has been adopted by the stock analysts at Wells Fargo, who are identifying new investment opportunities based on the positive environment. Indeed, the team has recently become optimistic about two well-known names in the technology industry – Amazon(NASDAQ:AMZN) and CoreWeave (NASDAQ:CRWV)– contending that both businesses are ideally placed to capitalize on the present surge in growth and provide additional returns. Let’s discover the reasons.
Amazon
We’ll begin by examining Amazon, the top player in online retail – and, with a market value of $2.34 trillion, the fifth most valuable company on Wall Street. Amazon’s main business is its retail division; this operation is supported by an extensive network of warehouses and delivery infrastructure, and in 2Q25, the most recent period reported, sales from Amazon’s North American and International segments reached almost $137 billion. The company’s overall revenue, at $167.7 billion, increased by over 13% compared to the previous year.
Amazon has leveraged its strong position in e-commerce to back numerous other business initiatives, with the most notable being its AWS cloud computing service and its efforts in artificial intelligence. Since its introduction, AWS has emerged as one of the leading subscription-based cloud services, rivaling major players like Google Cloud and Microsoft’s Azure. In the second quarter, AWS reported revenue of $30.9 billion, marking a year-over-year growth of 17.5%.
But AIThat’s where the real excitement is. Artificial intelligence technology has played a significant role in the overall stock market surge in recent years, and we’re just at the start of this growth period. Amazon has established itself as a key supporter of AI developments. The company is utilizing AI technology to improve the tools and services provided via AWS, and even to add new features to its retail website. More importantly, Amazon has invested $8 billion in the AI startup Anthropic, which developed the Claude AI models. Anthropic is part of Amazon’s Project Rainier, an AI computing initiative by AWS that seeks to create top-tier AI supercomputer clusters. The project uses a distributed architecture, setting up the supercomputer clusters across multiple AWS data centers, which allows for increased power and thermal efficiency while maintaining the benefits of ultra-low latency connections. AWS believes that this cluster design will boost the computing power available to train the Claude models by five times.
Looking at the company’s financials, we can examine the 2Q25 earnings statement. As mentioned, Amazon’s total revenue increased by approximately 13% compared to the previous year, reaching $167.7 billion; this was $5.6 billion higher than anticipated. AWS was the primary contributor to the revenue growth, as previously highlighted. Amazon’s net earnings per share came in at $1.68, exceeding expectations by 35 cents per share. The company’s operating cash flow for the past 12 months rose 12% year-over-year to reach $121.1 billion.
All that being said, it’s worth noting that Amazon’s stock has not performed well this year. While the NASDAQ has increased by 16% year-to-date, shares of AMZN remain unchanged. Despite this, Well Fargo analyst Ken Gawrelski maintains a positive outlook, citing the company’s solid and expanding presence in the subscription cloud sector along with the significant potential for returns from its AI initiatives.
Upgrading AMZN to OW (from EW) due to increased confidence in AWS growth in 2026. Increasing AWS growth forecast to +22% from previous/consensus of +19%/+18%. We believe Project Rainier, a major compute capacity expansion with partner Anthropic, will be the main factor driving this increase, adding 5%/4% to AWS growth in 2026/2027. We see AWS revenue acceleration as crucial for reversing the stock’s underperformance so far this year… Amazon Retail revenue and margin trends continue to be strong, even with Project Kuiper investments and FBA fee pressures. Notice more momentum with advertising helping Retail margins and offsetting tariffs…inflation uncertainty,” Gawrelski noted.
Gawrelski’s enhanced Overweight (Buy) rating is accompanied by a $280 price target, indicating a potential one-year increase of 27%. (To view Gawrelski’s performance history,click here)
In general, Amazon has a Strong Buy rating from analysts, with 43 recent reports all being positive. The stock is currently priced at $219.78, and the average price target of $265.55 suggests a potential increase of around 21% over the next year. (SeeAMZN stock forecast)
CoreWeave
The next stock we’re examining is fairly new to the public market. CoreWeave was established in 2017 and refers to itself as ‘the AI Hyperscaler,’ providing its clients with access to advanced cloud-based software designed to support the next wave of AI products and services. CoreWeave’s cloud platform is specifically developed for AI applications. It utilizes GPU clusters that are dependable and robust, and it is tailored to handle large-scale AI workloads.
CoreWeave’s cloud platform offers a standard range of essential, AI-focused cloud computing services: GPU processing power, high-speed networking, adaptable storage options, and managed software, to name a few. The platform is built to handle AI tasks efficiently, featuring quick deployment times and experiencing 50% fewer daily service disruptions.
CoreWeave is making significant efforts to increase its service reach and recently announced two major developments this month. The first, on September 16, included a commitment of 1.5 billion GBP to boost its AI data center capabilities and operations in the UK. This investment brings the company’s total funding for AI services in the UK up to 2.5 billion GBP. Later, on September 25, CoreWeave revealed an expansion of its existing contract with OpenAI. As part of this agreement, CoreWeave will supply the platform needed to support OpenAI’s development of its most advanced next-generation models. The value of this expanded contract is $6.5 billion, increasing the company’s overall contract value with OpenAI to $22.4 billion.
As mentioned earlier, CoreWeave is new to the public trading scene. The company conducted its initial public offering in March of this year. It offered 36,590,000 shares for sale, with some ‘existing shareholders’ adding an extra 910,000 shares. The stock opened at $40, and the offering raised $1.5 billion in total proceeds. This event represented the biggest US tech IPO since 2021. Since becoming a publicly traded company, CoreWeave’s stock has risen significantly by 200%, and the company now has a market value of approximately $60 billion.
CoreWeave announced its 2Q25 financial results – marking the company’s initial quarter as a publicly listed business – in August. During the earnings report, the company disclosed total revenues of $1.212 billion; this represented a 210% increase compared to the previous year and exceeded projections by $131 million. On the bottom line, the company experienced a quarterly net loss of 60 cents per share, falling short of expectations by 11 cents per share.
An AI firm has drawn the interest of Michael Turrin, who is responsible for analyzing the stock at Wells Fargo. Turrin has upgraded his rating for CoreWeave due to the company’s capacity to satisfy the demands of the expanding AI industry. He comments on CoreWeave: “Although the future of AI is still unclear, we think CRWV is positioned to gain in the short term as the top ‘pick-and-shovel’ infrastructure option, while demand keeps surpassing supply. Supplying GPU power to the world’s biggest AI research centers—such as OpenAI, Google, Meta, and Microsoft—CoreWeave has already started to show a variety of revenue sources, driving significant growth with favorable unit economics over the next three years.”
These remarks support the new Overweight (i.e., Buy) rating for the stock, and the analyst’s $170 price target suggests a 41% increase over the next year. (To monitor Turrin’s performance,)click here)
In total, 15 analysts are strongly optimistic, 11 are undecided, and 2 are taking a bearish stance on the stock – resulting in a Moderate Buy consensus rating. With the stock trading at $120.34 per share, the average price target set by the Street of $145.31 suggests approximately 21% potential growth. (SeeCRWV stock forecast)
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Acknowledgment: The views presented in this article belong exclusively to the interviewed expert. The material is provided for educational use only. It is crucial to conduct your own research prior to any investment decisions.
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