Amazon Analyst Sees Robotics Unlocking Billions In Savings

Benzinga
2025.06.02 16:19
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Analysts from BofA Securities have identified Amazon as a leader in AI and robotics, projecting that advanced robotics could yield up to $16 billion in annual savings by 2032. With over 750,000 robots aiding in 75% of orders, Amazon's automation is expanding to delivery stations and last-mile delivery, including autonomous drones. BofA raised its price target for Amazon stock from $230 to $248, maintaining a Buy rating, as the company enhances its competitive edge and profitability through robotics investments. Amazon shares rose 0.07% to $205.16 on Monday, up 8% over the past month.

Analysts from BofA Securities highlighted Amazon.com, Inc. AMZN as an industry leader in AI and robotics in a note released Monday.

The firm sees advanced robotics driving up to $16 billion in annual savings by 2032 and raised its price target on Amazon stock.

What To Know:

BofA Securities analysts highlighted Amazon's rapidly expanding robotics capabilities, with over 750,000 robots now assisting in 75% of customer orders.

Amazon introduced eight new robots in May 2025 focused on delivery station efficiencies and BofA maintained that the company is still early in its robotics efficiency cycle.

Key Takeaways:

  • Automation at Amazon is expanding beyond fulfillment centers to delivery stations and last-mile delivery. This includes investments in autonomous drones with a goal to deliver 500 million packages annually via drones by 2030, potentially saving 40% on those deliveries.
  • Amazon's new 12th Generation automated fulfillment centers, which feature 10 times more robots, are projected to deliver a 25% improvement in peak period costs, with a multi-year ramp-up planned for both new and retrofitted facilities.
  • BofA estimated that adoption of advanced robotics and AI could drive $16 billion in annual savings by 2032, adding 1.6 percentage points to Amazon's long-term retail margin.
  • BoA Securities analyst Justin Post reiterated a Buy rating on Amazon stock and raised its price objective from $230 to $248. The firm cited further strengthening of Amazon's competitive moat and improving profitability through continued investments in AI and robotics.

AMZN Stock Price Action: Amazon shares were up 0.07% at $205.16 on Monday and have climbed 8% over the past month, according to data from Benzinga Pro.

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