Amazon (AMZN) shares are in focus today after the tech behemoth launched “Nova Premier” – its most capable artificial intelligence (AI) model to date. 

Nova Premier offers advanced capabilities at a lower operational cost than its predecessor and beats it in terms of accuracy and efficiency as well, according to AMZN’s press release on Thursday. 

With the launch of Nova Premier that caters to enterprise clientele interested in customizable AI solutions, the company expects to strengthen its hold on the fast-growing artificial intelligence market. 

It could offer a much-needed reprieve to Amazon stock that’s down more than 20% versus its year-to-date high at the time of writing.  

Amazon Stock Lacks Meaningful Upside From Here

Amazon’s commitment to expanding its footprint in artificial intelligence makes it attractive for the long term. 

However, “with limited monetization progress,” investors should practice caution in gaining exposure to the tech stock in the near term, said Josh Beck, a Raymond James analyst, in his recent note to clients. 

Beck trimmed his price target on the Nasdaq-listed firm to $195 last week, indicating a lack of meaningful upside in AMZN shares from current levels. 

Plus, higher tariffs and the subsequently emerging trade war under President Donald Trump could also prove a significant headwind for Amazon stock in 2025, he added.  

Trump Tariffs Are a Major Threat to AMZN Shares

Higher tariffs put Amazon shares in an unusual dilemma this year. 

The e-commerce giant either has to raise prices and risk losing market share – or it can leave prices unchanged and take a hit to its margins instead. Evidently, neither alternative sounds particularly positive for AMZN shares. 

According to Josh Beck, tariffs could hurt the titan’s advertising business as well, given about 15% of its ads are linked to China. Amazon relies on the world’s second-largest economy for about 30% of online gross merchandise volume as well, he added. 

Other Wall Street Analysts Remain Bullish on Amazon 

Note that Raymond James is among Wall Street firms that are more dovish on Amazon stock at the time of writing. 

The consensus rating on AMZN shares currently sits at “Strong Buy” with the mean target of about $246 indicating potential upside of well over 25% from here.