The stock was up 1.81% to $1,813.06 a share in trading Monday.
Oppenheimer raised its price target to $2,085 from $1,975 a share and maintained its outperform rating on the stock, citing the company's ability to leverage its artificial intelligence capabilities for the Amazon Web Services business.
The analysts said they raised the price target "after revisiting our AWS model to reflect our views on artificial intelligence and its impact on cloud adoption. We think AWS is well-positioned as AI leads productivity improvements, forcing faster enterprise cloud adoption."
Oppenheimer said AWS wasn't only primed for more customers in the near future, but that its ability to drive profit is superior to other Amazon segments. The analysts said that as more businesses rely on artificial intelligence, those businesses will use AWS's services to gain access to AI. AWS also is a higher margin business than Amazon's other segments.
Two notable businesses that have been ardent customers of AWS for the past several years have been Lyft (LYFT and Pinterest.
Lyft, which went public on Friday, has spent roughly $80 million a year on AWS in the past five years or so, and recently signed a three-year, $300 million contract extension with AWS, according to Oppenheimer.
Demand for shares of burgeoning tech companies is currently strong, as seen by Lyft's opening price of $87 on Friday, 21% above the $72 offer price, as Lyft uses AWS' cloud technology for its promising ride-sharing platform.
Pinterest will spend at least $440 million per year on AWS for the next fourth-and-a-half years, Oppenheimer said. Pinterest aims to IPO in June of 2019.
One longer-term potential AWS headwind: regulation.
Oppenheimer said it believes that as Amazon becomes more of a threat in other industries like media and advertising, regulators will start to wonder whether Amazon needs to spin off AWS.
Amazon shares have risen 15.6% this year.
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