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

Morgan Stanley analyst Brian Nowak has outlined an optimistic scenario where Amazon's stock price could reach $500 by the end of 2027, nearly doubling its current value.

A central driver of this projection is Amazon Web Services (AWS). Nowak suggests that the cloud division could potentially achieve an annual revenue of $1 trillion within the next eight to ten years. This aligns with previous comments from Amazon CEO Andy Jassy regarding the long-term scale of the AWS business.

To reach these targets, the model assumes a significant expansion of computing capacity. Nowak projects an increase of six gigawatts in 2026 and eight gigawatts in 2027, with subsequent annual increases of eight gigawatts. Additionally, the model relies on increasing revenue per watt from the current $8 to $12, which could lead to the $1 trillion annual revenue milestone by 2035.