Shares of e-commerce and cloud computing behemoth Amazon.com Inc. (AMZN) closed up 1.3% higher on Wednesday at $950.87 on an upbeat research note from analysts at Wells Fargo Securities who foresee a recent pullback as a buying opportunity.

As AMZN rallies 26.8% year-to-date (YTD) versus the SP 500’s 12% gain over the same period, the investment firm expects the the stock to surge another near 50% as its artificial intelligence and data analysis capabilities position the company at the head of new industries. (See also: Amazon Will Be Top Retailer, Tech Co. by 2025: MKM.)

Wells Fargo initiated coverage on the Seattle-based retailer with an outperform rating and a $1,400 price target, the highest 12-month target out of the 42 analysts that cover Amazon, and reflecting an approximate 47% upside from Wednesday close. Like its large-cap tech peers, AMZN has dropped off this month, falling 3% so far in September, including Wednesday’s gain.

AI, Data Analysis Feed Insights

Wells Fargo’s Ken Sena highlights the tech titan’s competitive advantage in artificial intelligence and data analysis as it aggressively enters new segments.

“Given a strong customer experience, scaled infrastructure investments, high user engagement, and lead within the Cloud, we believe AMZN is among the best positioned to apply these neural network advances [artificial intelligence] across new verticals/industries,” wrote Sena. “We see this lead in data, coupled with the company’s edge in compute efficiency, as increasingly feeding insights into supply chain, for its retail, video, and other efforts, and through AWS, for its partners.”

The analyst sees continued momentum for Amazon in the “infrastructure-as-a-service” commercial cloud computing space, in which the firm commands 46% of the market. Sena cites research from IDC, which forecasts the total public cloud computing industry to skyrocket to reach $200 billion by 2020. Another $130 billion sales opportunity for Amazon rests in the apparel, over-the-counter medicine and grocery product categories in the U.S.,” writes Wells. (See also: Amazon Can't Beat These Off-Price Rivals: JPM.)

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