Amazon Shares Surge as Morgan Stanley Raises Price Target on AWS Growth
Amazon.com, Inc. (AMZN) stock climbed over 5% on Monday, closing at $262.60 and pacing toward its strongest single-day gain in nearly three months. The surge followed an updated research report from analyst firm Morgan Stanley, which designated Amazon as a top pick and raised its price target to $350 from $335, representing roughly 40% upside from Friday's close.
The optimistic rating stems from expected strength in cloud platform Amazon Web Services. Analysts project AWS revenue to grow 47% year-over-year in 2027 and 42% in 2028, driven in part by plans to deploy 2 million artificial intelligence processors from Nvidia (NVDA) across its global data infrastructure. The expansion is expected to help Amazon generate earnings of $16.50 per share by 2028.
In addition to cloud development, Amazon continues to secure power sources for its infrastructure demands. The company signed a funding agreement to back initial feasibility studies for a proposed 960-megawatt small modular nuclear reactor facility in Indiana alongside X-energy (XE) and American Electric Power (AEP). The project aligns with Amazon's broader goal to support more than 5 gigawatts of nuclear energy deployment by 2039.
Key points
- Amazon.com, Inc. (AMZN) stock jumped 5.02% to $262.60, on track for its best day in nearly three months.
- Morgan Stanley raised its price target on Amazon to $350 from $335 and named the stock a top pick.
- AWS revenue growth is forecasted at 47% in 2027 and 42% in 2028, supported by 2 million new Nvidia GPUs.
- Amazon is funding feasibility studies for a proposed 960-megawatt nuclear power project in Indiana.
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Why did Amazon stock go up today?
Amazon stock rose over 5% after Morgan Stanley raised its price target on the stock to $350 and designated it as a top pick, citing strong growth expectations for its cloud business AWS.
What is Morgan Stanley's price target for Amazon?
Morgan Stanley increased its price target for Amazon.com, Inc. to $350 per share from $335, representing a potential 40% upside from its previous close.
How fast is AWS expected to grow?
Morgan Stanley forecasts that AWS will achieve 47% year-over-year revenue growth in 2027 and 42% in 2028, largely driven by deploying 2 million Nvidia chips across its global data center network.