Morgan Stanley Sees $335 Target for Amazon Stock Amid AWS Growth

Morgan Stanley has upgraded its outlook on Amazon's stock, predicting it will reach $335 in the next year, which is a 28.6% potential gain from current levels. The upgrade comes after Amazon reported a record Q2 performance, with revenue hitting $200.6 billion, a 20% year-over-year increase.

The firm attributes this growth to Amazon's cloud business, AWS, which saw a 37% rise in sales to $42.2 billion. Morgan Stanley analyst Brian Nowak believes that AI computing and Amazon's $220 billion AI spending plan by 2026 will drive further growth in AWS sales.

Additionally, the firm forecasts a long-term surge to $500 by 2027 if AWS sales accelerate. This prediction is based on the increasing demand for AI computing and Amazon's significant investment in this area.