Amazon's Stock Price Could Double Next Year: Morgan Stanley Sees $500 Target

Amazon's stock price has declined for five consecutive days, but Morgan Stanley remains optimistic about its future prospects. According to the investment firm's analysts, Amazon's share price could reach $500 by the end of 2027, with the key factor being the growth of its AWS business.

Morgan Stanley estimates that if Amazon continues to expand its computing power and unit profitability improves, AWS revenue could exceed $1 trillion by 2035. The investment firm has also calculated that if each additional watt of computing power generates $12 in annual revenue per unit, this milestone could be reached as early as 2024, or at the latest by 2027.

The analysis assumes that Amazon will add 6 to 8 gigawatts of computing capacity between 2026 and 2027, after which it will expand at a rate of approximately 8 gigawatts per year. This would increase AWS's total computing capacity from about 14 gigawatts in 2025 to roughly 120 gigawatts by 2035.