1 Analyst Says Amazon Stock Has 30% Upside. What's the Bull Case for Buying Amazon Right Now?
Amazon is tapping into long-term AI trends with AWS and its custom processors.
Morgan Stanley's Brian Nowak has increased Amazon's price target to $350, a 33% upside from its current price. Amazon is investing $220 billion this year in AI, primarily for AI chips and cloud computing. Amazon Web Services (AWS) leads the cloud computing market with a 28% share. AWS revenue rose 37% in Q2 2026, reaching $169 billion.
Analysts predict AWS could double its revenue to $600 billion by 2036 as AI cloud demand surges. Amazon's custom Trainium AI processors are also gaining traction, with an annualized revenue run rate of $25 billion. Custom AI processors are becoming crucial in AI and are being adopted by major players like OpenAI and Anthropic. With substantial customer commitments and market growth, Amazon is positioned for long-term AI success.
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