Amazon stock could reach $500 by 2027, Morgan Stanley predicts

Morgan Stanley analyst Brian Nowak has outlined an optimistic long-term scenario for Amazon, projecting that its stock price could reach $500 by the end of 2027. This forecast is primarily driven by the potential growth of Amazon Web Services (AWS).

According to the model, AWS could achieve annual revenues of $1 trillion within the next eight to ten years. To reach this milestone, the company would need to significantly expand its data center capacities. The projections include adding six gigawatts of capacity in 2026 and eight gigawatts annually in subsequent years.

Another key factor in this scenario is the ability to increase revenue per unit of power. The model assumes that if AWS can increase its revenue from the current $8 per watt to $12 per watt, it could drive substantial growth. Amazon CEO Andy Jassy has previously acknowledged the possibility of AWS reaching the $1 trillion annual revenue mark.