Amazon shares seen gaining on AWS and AI push

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19.10.2026

Amazon shares seen gaining on AWS and AI push — Amazon: AWS & AI drive gains

Morgan Stanley is becoming more bullish on Amazon as the company expands its cloud and artificial intelligence businesses. The bank raises its price target to $350 from $335 and says investors are still underestimating the earnings potential tied to AWS, agentic AI and robotics.

Highlights

Morgan Stanley raises Amazon's price target to $350 from $335, projecting 40% upside, citing underappreciated AWS and AI-driven growth prospects.
The bank expects AWS to achieve 47% year-over-year growth in 2027 as Amazon benefits from increasing visibility into its AI-focused Bedrock cloud service.
Amazon is positioned to capitalize on agentic AI in shopping and robotics-driven fulfillment, with 62 of 64 analysts rating it buy or strong buy per LSEG data.

AWS growth outlook drives target increase

As reported by CNBC, Morgan Stanley keeps an overweight rating on Amazon and lifts its price target on the stock to $350 from $335, implying 40% upside from Friday’s close. The bank also names Amazon one of its top picks.

Analyst Brian Nowak says investors are underappreciating the effect of Amazon Web Services on the company’s business and share performance. He says AWS is set to support revenue growth, especially as Amazon gains more visibility into Bedrock, its AI-focused cloud service.

Nowak writes that AWS’s growth and profit runway remains underappreciated. Morgan Stanley expects AWS to deliver 47% year-over-year growth in 2027.

AI positioning supports broader market case

Morgan Stanley also says Amazon is likely to benefit from the rise of agentic artificial intelligence in shopping. Nowak says Amazon remains a key enabler and winner in that segment, even after the launch of Meta’s personal AI agent Muse, and expects the company to use its e-commerce infrastructure and loyal user base to keep monetizing that opportunity.

The bank also sees Amazon as well positioned in physical AI through robotics in fulfillment centers. Nowak says a ramp-up in new builds and retrofits through 2027 could highlight Amazon’s position as a physical AI winner.

The call aligns with broader Wall Street sentiment. Of 64 analysts covering Amazon, 62 have a buy or strong buy rating on the stock, according to LSEG data, while the shares are up more than 8% year to date.

Our earlier article on U.S. AI data center expansion highlighted how rising financing costs, construction delays, and power-grid limits are making many large-scale projects less credible. We noted that only a minority of planned builds are viewed as realistic, as tighter capital conditions and local opposition raise doubts about how quickly computing capacity can scale to meet AI demand.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.

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