Wells Fargo analyst Ken Gawrelski has maintained an Overweight rating on Amazon.com (NASDAQ: AMZN) while raising the price target to $322 from $313. The adjustment reflects a revised outlook on the company's valuation and market performance.

Rating and Price Target Update

The decision to uphold the Overweight rating indicates confidence in Amazon.com's ability to outperform the broader market. The increased price target suggests an upward revision in the expected fair value of the shares.

The new target of $322 represents a specific increase from the prior level of $313, signaling a positive shift in the analyst's projections.

While Wall Street remains fixated on AI revenue growth, a deeper look at Big Tech's cash generation reveals a surprising divide. Microsoft Corp., Alphabet Inc. and Meta Platforms Inc. are generating more operating cash than ever before, but Amazon.com Inc. is telling a different story. Despite producing record cash from its business, the e-commerce and cloud giant has watched its free cash flow evaporate as AI infrastructure spending accelerates. The contrast highlights an emerging reality of the AI arms race: generating cash is no longer the challenge. Keeping it is.

Big Tech's Cash Machines Keep Getting Bigger

Operating cash flow has surged across the largest technology companies over the past three years. Microsoft's operating cash flow has climbed from $89.03 billion in 2022 to $169.65 billion on a trailing 12-month basis. Alphabet has nearly doubled its operating cash generation over the same period, rising from $91.50 billion to $174.35 billion, while Meta's operating cash flow has jumped from $50.47 billion to $124 billion. Amazon's growth has been equally impressive, more than tripling its operating cash flow from $46.75 billion in 2022 to $148.53 billion over the trailing 12 months.

Amazon's Free Cash Flow Tells A Different Story

Amazon's free cash flow has swung from $32.88 billion in 2024 to $7.69 billion in 2025, before turning negative $2.47 billion on a trailing 12-month basis. By comparison, Microsoft's trailing free cash flow remains at $72.92 billion, Alphabet's at $64.43 billion, and Meta's at $48.25 billion. The divergence suggests Amazon is reinvesting virtually every additional dollar it generates back into the business, largely to fund the enormous infrastructure buildout required to support artificial intelligence workloads.

AI Is Changing The Cash Equation

Chief Executive Andy Jassy has repeatedly described AI as a once-in-a-generation opportunity, with Amazon pouring tens of billions of dollars into expanding AWS data centers, custom Trainium chips and broader cloud infrastructure. For years, Big Tech's biggest attraction wasn't just rapid revenue growth—it was the ability to convert that growth into massive amounts of free cash, fueling share buybacks, acquisitions and strategic investments. Today, AI is changing that equation. Microsoft, Alphabet and Meta continue to generate enormous free cash flow even as spending rises. Amazon, however, is offering an early glimpse of what happens when AI infrastructure investment begins consuming nearly all of the cash a company generates. That doesn't necessarily make Amazon's strategy a negative one. If today's investments produce years of AI-driven growth through AWS, they could strengthen the company's long-term competitive position. For investors, however, the AI story is evolving. Revenue growth remains important, but the next question may be even more consequential: how much of Big Tech's record cash generation actually makes it back to shareholders—and how much is being recycled into the AI arms race?