Monness, Crespi, Hardt analyst Brian White predicts that Amazon (AMZN) stock is poised to receive a boost from its increasing ties to Nvidia (NVDA) and the rapid growth of artificial intelligence (AI) in the enterprise sector.

White's report highlights that Amazon Web Services (AWS) is likely to benefit from the strong response to Nvidia's recent "AI Woodstock" developer event held in San Jose, California. The event showcased the escalating prominence of AI, particularly in enterprise applications. As a result, White reiterates a buy rating for Amazon, with a target share price of 215.

The report emphasizes that leading cloud service providers, including AWS, are well-positioned to capitalize on the early-stage rise of generative AI projects. However, White also notes the potential for growing skepticism surrounding AI hype, which may lead to increased investor scrutiny in the enterprise software sector.

Over the past year, Amazon has focused on securing enterprise-level investments in AI, forging various initiatives with Nvidia. These recent ventures include AWS offering Nvidia's AI computing platform, Blackwell, and hosting Nvidia's DGX Cloud AI training software service. Additionally, the companies are collaborating on cybersecurity and an AI supercomputer, while introducing tools to aid companies in training AI models using their own data.

The partnership announcement between Amazon and Nvidia builds upon their existing collaborations. Last November, Amazon became the first cloud provider to launch services with Nvidia's GH200 Grace Hopper processors at the AWS client conference.

Nvidia's event also highlighted partnerships with Microsoft, Alphabet, and Oracle, as each company competes to host the colossal computing power required for generative AI applications. While Amazon remains the largest cloud infrastructure provider by market share, Microsoft has gained traction in recent quarters.

White's note further outlines his expectations for Amazon, including continued capitalization on the cloud, expansion of the digital ad business, AI innovation, participation in healthcare opportunities, efficiency gains through a regional fulfillment network, and leveraging a leaner cost structure.

Currently, Amazon stock is trading slightly higher at 180.07. The shares have recorded a 20% gain year-to-date and have surged by 84% over the past 12 months.

In conclusion, Amazon's stock is expected to benefit from its growing partnership with Nvidia's AI initiatives, particularly in the enterprise sector. With the evolvement of generative AI projects and the expanding presence of cloud service providers, such as AWS, Amazon remains well-positioned to capitalize on the advancements in AI technology.

(Note: The provided numbers, entities, and dates from the text have been incorporated into the article.