According to Truist, Amazon and Alphabet are poised for a rally as their cloud businesses expand, surpassing the expectations of market analysts. The bank has increased its price target on Amazon to $320 from $310 per share, suggesting a 17% potential upside based on Thursday’s closing price. Truist has increased its price target on Alphabet to $430 from $415, representing a 10% premium over the closing price of the shares on Thursday. Both stocks have received a buy rating.

“Looking at backlog (as of 3/31)+recent deals, [consensus], revenue [estimates]…are below what they should be,” analyst Youssef Squali said Friday in a note to clients. “Net net, both companies should grow faster for longer but on higher Capex. These investments are increasingly de-risked though considering the triple digit rise in [remaining performance obligations].” According to Truist, Google Cloud’s revenue growth is projected to accelerate to the mid-80% range by the end of this year, an increase from 63% in the first quarter. In contrast, analysts anticipate a deceleration in the company’s revenue.

The analyst also indicated that Wall Street is underestimating AWS’ capital expenditures and revenue growth for fiscal year 2027. Shares of Google-owner Alphabet have appreciated by 25% since the start of the year. Amazon’s shares have appreciated by 19% in 2026.