Amazon (AMZN) Stock: Company Tests Humanoid Delivery Robots While Analysts Boost Price Target

TLDR

Table of Contents

Amazon (AMZN) is developing AI software for humanoid robots that could replace delivery workers, with testing planned at a new “humanoid park” facility in San Francisco
JPMorgan raised Amazon’s price target to $240 from $225, citing tariff relief and diverse business opportunities
Amazon stock gained nearly 1% to close at $207.23 on Wednesday following the analyst upgrade
The company ranks as JPMorgan’s top “Best Ideas” pick due to its diversified revenue streams and growth potential in AWS, advertising, and satellite internet
Amazon is building an indoor obstacle course at its California office to test humanoid delivery robots using hardware from other companies

Amazon is moving forward with plans to test humanoid robots for package deliveries. The company is developing artificial intelligence software that could eventually replace human delivery workers.

In the near future, humanoid robots driving an autonomous, electric vehicle will deliver your Amazon packages 📦 ⚡️🚛 🦾 @TheHumanoidHub #AI #IoT pic.twitter.com/JGd2251IK5
— Glen Gilmore (@GlenGilmore) June 5, 2025

The tech giant is finishing construction of a “humanoid park” at one of its San Francisco offices. This indoor obstacle course will serve as a testing ground for the robotic delivery system.

Amazon plans to use hardware from other companies for these initial tests. The focus remains on developing the AI software that would power these delivery robots.

The announcement comes as Amazon continues to integrate artificial intelligence across its operations. The company recently demonstrated how AI will improve its stockroom robots, delivery systems, and warehouse efficiency.

Analyst Upgrades Drive Stock Higher

JPMorgan analysts raised Amazon’s price target to $240 from $225 on Wednesday. The upgrade reflects improved conditions following recent tariff relief measures and lower recession risks.

Doug Anmuth, who leads JPMorgan’s internet sector analysis, had previously cut targets for most covered stocks after President Trump’s April tariff announcement. The recent U.S.-China tariff agreement has prompted analysts to revise their outlook upward.

Amazon stock gained nearly 1% to close at $207.23 following the price target increase. The stock has been trading in a tight range since the May 12 tariff agreement announcement.

JPMorgan rates Amazon as “overweight” and places it at the top of their “Best Ideas” list. The analysts expect Amazon Web Services to accelerate sales growth in the second half of the year.

Multiple Growth Drivers Support Bullish Outlook

Amazon’s e-commerce business continues benefiting from the shift from in-store to online shopping. This secular trend provides a solid foundation for continued growth.

The company operates multiple large growth opportunities beyond its core retail business. These include its advertising platform, Project Kuiper satellite internet service, and grocery operations.

Amazon’s logistics services and Prime Video streaming platform add to its diversified revenue streams. This diversity makes it “the most diversified mega-cap across revenue and profit,” according to Anmuth.

Some investors remain cautious about Amazon’s direct tariff exposure compared to other internet stocks. Economic shifts could also impact the company’s performance.

The stock currently trades in a cup-with-handle base pattern with a buy point at $214.84. Amazon shares are down 5.5% year-to-date, underperforming some peers in the Magnificent Seven group.

JPMorgan’s broader internet sector review included price target increases for several other companies. Spotify, Booking Holdings, and eBay all received higher targets from the investment bank.

Amazon’s humanoid robot testing represents the latest step in the company’s automation push. The San Francisco facility will provide data on how these robots perform in real-world delivery scenarios.

Stay Ahead of the Market with Benzinga Pro!

Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders: