Amazon stock could double by 2027 on AWS growth, Morgan Stanley predicts

Morgan Stanley analysts have issued a bullish forecast for Amazon, predicting the stock price could nearly double to $500 per share by the end of 2027. This projection is primarily driven by the anticipated growth of Amazon Web Services (AWS).

Analyst Brian Nowak suggests that AWS revenue could reach $1 trillion within the next 8 to 10 years, supported by the surging demand for generative AI. To achieve this, Amazon must aggressively expand its computing capacity. Nowak estimates the company will add 6GW of capacity in 2026 and 8GW in 2027, with subsequent annual additions of approximately 8GW.

Amazon CEO Andy Jassy noted that AWS currently has an annualized sales figure of approximately $170 billion. The ability of hyperscalers to scale computing resources remains a critical factor for long-term revenue growth in the cloud sector.