Morgan Stanley is optimistic about Amazon's AI growth potential: AWS may become a trillion-dollar business

Comparing news, Morgan Stanley said that if the growth of the Amazon (Amazon) cloud computing business of AWS accelerates further, the company's stock price may reach $500 by the end of 2027, which is close to double the current level.

Morgan Stanley's optimistic scenario is based on how AWS is expected to grow into a $1 trillion business with annual revenue in the future. The main drivers include growing demand for artificial intelligence computing power and data center expansion. As competition for AI infrastructure heats up, Amazon is drastically increasing AI-related investment. The company recently raised its AI capital expenditure forecast for 2026 to $220 billion, focusing on expanding cloud computing infrastructure, AI computing power, and data center capabilities.

Morgan Stanley believes that AWS will continue to play a central role in the AI wave, and as enterprises accelerate their adoption of generative AI services, demand for cloud computing and inference computing power may further drive AWS revenue growth.

However, Morgan Stanley currently maintains a benchmark price target of $335 for Amazon, which is about 28% higher than the current stock price. The $500 target is a more optimistic scenario, depending on whether AWS can achieve faster growth and fully seize AI infrastructure market opportunities.