Evercore ISI's Mark Mahaney believes the market is overlooking what artificial intelligence (AI) can do for Amazon.com Inc (NASDAQ: AMZN) stock.
What To Know: Throughout 2023, the market bid up shares of Microsoft Corp (NASDAQ: MSFT) and Nvidia Corp (NASDAQ: NVDA) because of each company's exposure to AI.
"There's going to be broad-based applications and I think actually AWS and Amazon are going to be one of the biggest beneficiaries," Mahaney said Tuesday on CNBC's "Squawk Box."
2024 is looking bright for Amazon. Mahaney expects AI to be a driver of accelerating growth at Amazon in cloud computing, advertising and retail.
The Evercore analyst believes Amazon's AI boost is hidden in the numbers currently, but he expects that to change next year. AI will help the company to deliver record operating margins and profit in 2024, he said.
At current prices, Amazon is offering investors an attractive buying opportunity heading into 2024, he said, noting that "the stock price is still dislocated."
Mahaney told CNBC that he expects Amazon shares to be trading closer to $200 a year from now.
"2023 was the trough year in terms of margins, revenue growth, multiples, and that just means a lot of upside for investors. I know we've already had this pretty nice move off the bottom, but I think there's a lot more because the fundamentals haven't peaked. They've got a lot of room for recovery," he said.
AMZN Price Action: Amazon shares were down 2.27% at $142.84 at the time of writing, according to Benzinga Pro.