Morgan Stanley Sees AI Driving Amazon Shares to $500 by 2027

Generative AI is creating heavy demand for computing power and cloud infrastructure, giving Amazon Web Services a fresh growth engine. AWS is one of Amazon’s most important profit drivers, making its ability to add capacity and monetize AI workloads central to the group’s long-term valuation. Investors are watching whether infrastructure spending can translate into sustained cloud revenue growth.

Morgan Stanley expects surging generative-AI computing demand to strengthen AWS momentum and sees the cloud business eventually reaching $1 trillion in revenue. The firm said Amazon’s rapid expansion of computing capacity should improve its ability to convert demand into sales. It forecast that Amazon shares could double to $500 by the end of 2027.