Amazon’s AWS Could Compound to $222 Billion by 2027. TD Cowen Says That’s 11% More Than Anyone Expects

Amazon's Amazon Web Services (AWS) could reach $222 billion by 2027, according to TD Cowen, which is 11% more than Wall Street's consensus, driven by planned AI infrastructure spending. Over 100,000 companies use Amazon Bedrock, with enterprise AI production demand still ahead. Amazon's Trainium and Graviton chips generate over $10 billion in annual revenue with triple-digit growth, reducing customer inference costs and boosting margins over time.

Despite a recent 2.47% decline in Amazon's (NASDAQ: AMZN) shares to $258.63, the stock is up 14.19% year to date, still below its 52-week high of $287.16. Analysts have mixed outlooks on the company, but TD Cowen is making a bold call on AWS revenue, predicting it will reach $165 billion in 2026 and $222 billion in 2027. TD Cowen's thesis is based on generative AI tailwinds and Amazon's $200 billion capital expenditures in 2026, heavily focused on AI infrastructure.