Odaily Planet Daily reports that Morgan Stanley stated that if Amazon's cloud computing business, AWS, accelerates its growth further, the company's stock price could reach $500 by the end of 2027, nearly doubling from current levels.
Morgan Stanley’s optimistic scenario is based on AWS’s potential to grow into a $1 trillion annual revenue business, primarily driven by increasing demand for AI computing power and data center expansion. As competition in AI infrastructure intensifies, Amazon is significantly increasing its investments in AI. The company recently raised its 2026 AI capital expenditure forecast to $220 billion, focusing on expanding cloud infrastructure, AI computing power, and data center capabilities.
Morgan Stanley believes AWS will continue to play a central role in the AI wave, as enterprise adoption of generative AI services could further drive revenue growth for AWS through increased demand for cloud computing and inference power.
However, Morgan Stanley currently maintains a base target price of $335 for Amazon, representing approximately a 28% upside from the current stock price. The $500 target price reflects a more optimistic scenario, contingent on AWS achieving faster growth and fully capturing opportunities in the AI infrastructure market.