Morgan Stanley Names Amazon Its Top Pick With $350 Price Target

Morgan Stanley argues large expected GPU purchases, massive capex, clearer Bedrock traction are likely to drive rapid AWS growth that could expand margins and lift valuation.

Overview

Morgan Stanley analyst Brian Nowak elevated Amazon to his firm's top pick and set a $350 target based on a bullish AI-driven growth scenario.
Nowak projects AWS revenue will nearly triple to about $374 billion by 2028 and forecasts 47% growth next year followed by 42% in 2028.
The note cites Nvidia’s comment that Amazon is expected to buy roughly 2 million GPUs over two years as evidence of rising AI compute demand for AWS.
Nowak models unusually large capital spending of $355 billion in 2027 and $365 billion in 2028 alongside AWS margin expansion to roughly 42% and 44%, producing an adjusted EPS of $16.50 in 2028.
Those projections are forward-looking and hinge on execution and Bedrock’s commercial traction, and the planned spending could keep free cash flow under pressure while Amazon builds the data-center capacity to meet demand.