Top tech analyst says people are buying more things on Amazon because of AI. He raised his price outlook as a result

Amazon.com is likely to see its shares rally as artificial intelligence drives more consumers to its online shopping platform, according to Evercore ISI.

The investment firm has an outperform rating on the online marketplace and hiked its price target on the stock hares to $355 from $315, implying roughly 40% upside from Thursday's close.

"For the first time, survey evidence [shows] that agentic AI is actually additive for Amazon Retail, with 57% of Alexa AI users buying a product they were not previously aware of," analyst Mark Mahaney wrote Thursday in a note to clients.

Agentic AI refers to tools or robots powered by artificial intelligence that can execute a variety of tasks, including product discovery and online purchases, without the help of humans. Evercore ISI's recent annual online retail survey shows that 92% of respondents had used Amazon, making it the most popular online platform among those polled.

The next most widely used online retailer, Walmart , had a penetration rate of just 58%, according to Evercore ISI data. Amazon's dominance in online retail is likely to grow as the use of Alexa and other AI-fueled methods of shopping become more popular, Mahaney said. "Alexa for Shopping could be an accelerant … 36% [of participants in the survey reported] buying more," because of the AI addition to Alexa, he wrote.

"Agentic AI could drive potential [acceleration]." Evercore ISI's call matches the consensus on Wall Street, where 64 of 68 analysts rate Amazo it a buy or strong buy, LSEG data shows. Amazon shares have risen 16% in the past month and 27% over the past six months.