Morgan Stanley Sees Amazon Stock Hitting $500 by End of 2027 on Strong AWS Growth

Morgan Stanley analyst Brian Nowak has given Amazon (AMZN) a target price of $335, implying a 30% upside from its current stock price, and maintained an 'Overweight' rating. The report notes that if Amazon's AWS business continues to grow along its expected trajectory, Amazon's stock price could reach $500 by the end of 2027.

The key to AWS revenue growth lies in the monetization efficiency of its computing capacity. Morgan Stanley estimates that Amazon will add 6 to 8 gigawatts (GW) of computing capacity between 2026 and 2027, driving total AWS computing capacity from about 14 GW in 2025 to about 120 GW in 2035.

The report suggests that better-than-expected AWS revenue growth, sustained margin expansion, and operating leverage from retail growth and improved logistics fulfillment costs could all unlock further upside potential. If approximately $500 billion in long-term EBIT is discounted to 2028 at a 10% weighted average cost of capital (WACC), and then capitalized at an EV/EBIT valuation multiple of about 21x, an implied stock price of around $500 by the end of 2027 is derived for Amazon.