Amazon.com Inc (NASDAQ:AMZN)'s multibillion-dollar satellite internet project, Kuiper, is accelerating its launch schedule and could generate $7.1 billion in consumer revenue by 2032, Bank of America said in a note Thursday.
The firm estimates Amazon will invest about $23 billion to build out the Kuiper satellite network, which aims to deliver internet services to underserved regions.
The company launched its first 54 satellites in the second quarter and is expected to increase launch frequency in the second half of 2025.
Quarterly build-out costs could peak at $1.1 billion in the fourth quarter of this year, Bank of America said, with expenses beginning to be capitalized in early 2026.
“Project Kuiper has remained a top management growth initiative despite Amazon’s cost-focused agenda,” analysts wrote, noting that the company has signaled consumer service could begin as early as late 2025, though delays remain possible.
Amazon is required under its FCC license to deploy 1,618 satellites by July 2026, though Bank of America expects a possible extension due to launch delays. Analysts highlighted potential synergies with Amazon’s cloud arm AWS and retail logistics operations, as well as opportunities in enterprise and government services.
Globally, around 2.6 billion people lack access to broadband internet, and BCG estimates the satellite internet market could reach $40 billion in annual revenue by 2030. Amazon could secure a sizable portion of that, with Bank of America projecting a 30% consumer market share.
“We see a compelling opportunity, and potentially strong long-term margins given high start-up costs,” the analysts wrote.
Bank of America maintains a $248 price objective on Amazon shares, which were trading just above $222 on Thursday afternoon.