Morgan Stanley Raises Amazon Stock Price Target to $350

The firm issued a buy recommendation for Amazon as consensus outlooks remain strong among Wall Street analysts.

Updated on Oct. 20, 2026 in Stock Picks

Morgan Stanley Raises Amazon Stock Price Target to $350

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Morgan Stanley has increased its price target for Amazon stock from $335 to $350, citing under-appreciated growth within Amazon Web Services. The company shares closed at $262.45 prior to the announcement.

Why it matters

Analysts suggest that Amazon Web Services is currently undervalued, though infrastructure limitations regarding energy availability for new GPU hardware remain a challenge. These energy constraints currently prevent the firm from fully operationalizing its significant investment in GPU racks.

Amazon stock faces a projected 33.36% upside based on the new $350 target, while consensus estimates predict an average price target of $330.49 by late 2027. Additionally, the company is projected to reach an earnings-per-share of $16.50 in 2028.

The players

Morgan Stanley

This global financial services firm provides investment banking, securities, and wealth management services to institutional and retail clients.

Amazon

This multinational technology company focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence.

Wall Street

This refers to the global financial hub in New York City that serves as the central location for investment banks and market analysis.

The details

While Amazon has aggressively expanded its hardware capabilities, the firm reportedly purchased more GPUs than it can currently power within its data centers. This disparity highlights the bottleneck created by energy infrastructure needs as the company balances its capital expenditure with a six-year useful life estimate for its GPU hardware.

October 19, 2026: Morgan Stanley issued the new buy rating and price target.
October 20, 2026: Analyst data was retrieved from TipRanks.
Late 2027: The average analyst consensus expects the stock to reach $330.49.
2028: Earnings-per-share are projected to reach $16.50.

Market Dynamics

This assessment follows a pattern set by the 2021-2023 chip shortage hardware investment cycles by tracking how firms manage massive capital expenditures on components that may outpace current operational capacity. Such shifts reflect broader long-term cycles in how massive technology firms prioritize infrastructure capacity alongside artificial intelligence hardware procurement.

Investors tracking Amazon should monitor how the company resolves its data center energy capacity issues, as this impacts the efficiency of its capital-intensive GPU investments. Portfolio managers may adjust their positions based on the consensus buy rating and the significant projected upside in the share price.

The takeaway

Large-scale hardware purchases in the AI sector require matching energy infrastructure to become fully operational and profitable. Investors should consider that stock performance may be impacted by how effectively companies manage the transition from purchasing hardware to fully utilizing it.