As Amazon.com, Inc. (NASDAQ: AMZN) stock rose by more than 15% since it reported record-breaking second quarter performance, Brian Nowak, an analyst at Morgan Stanley (NYSE: MS), expects another rally towards a new all-time high (ATH) over the next 12 months.
Nowak reiterated a ‘Buy’ rating for Amazon stock, according to a note sent to clients on August 16 and analyzed by Finbold on August 18. He set the bank’s 12-month price target for AMZN at $335. With Amazon’s stock trading at $260.50 during Tuesday’s pre-market session, Morgan Stanley believes that holding it over the next 12 months could yield a potential 28.6% upside.
The bank further predicted that AMZN stock could surge by 91.94% to hit $500 by the end of 2027, if Amazon Web Services (AWS) sales accelerate. Specifically, Nowak predicted a $500 price for Amazon fueled by $1 trillion in revenue for AWS over the next 8-10 years.
Amid rising demand for Artificial Intelligence (AI) compute from enterprises, Amazon’s CEO Andy Jassy highlighted, in the second-quarter earnings report, that the company is undertaking massive data center expansion. As such, Amazon raised its 2026 AI spending forecast to $220 billion.
In its Q2 earnings, Amazon’s AWS registered a 37% uptick in sales year-over-year (YoY) to $42.2 billion. Consequently, this company’s revenue reached $200.6 billion, a 20% increase YoY, which was its first of a kind since its inception.
Amazon stock price forecast and performance
Following an ‘Overweight’ rating for Amazon stock price from Morgan Stanley, 39 Wall Street analysts surveyed by TipRanks have set an average 12-month price target of $332.95. As such, this collective target suggests a possible 27.4% return on investment from press time.
AMZN’s price has already signaled a bullish trend year-to-date (YTD), after forming several higher highs and higher lows. Notably, this company’s stock closed Monday trading at $262.31, thereby a 13% gain YTD.
If the AI boom continues uninterrupted, AMZN’s price could continue with its bullish outlook.
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