The AI spending scare has hammered Amazon (AMZN) stock, pushing it into the penalty box, but Bank of America analysts have a different perspective.

The bank reaffirmed its Buy rating on the stock and reset its price target to $275, implying nearly $64.36 in upside from Amazon’s current $210.64 share price (a 30.6% potential gain).

Essentially, BofA’s making the argument that Mr.Market, in many ways, is stuck in the wrong debate.

Over the past few weeks, investors have obsessed over Amazon’s colossal AI capex numbers and whether the returns can ever catch up.

Contrary to popular belief, BofA argues that, in today’s AI-powered economy, infrastructure capacity is clearly monetizable. So when compute demand continues to…