Morgan Stanley’s new Amazon price target rests on five possible catalysts, from faster AWS growth to warehouse robotics. Yahoo Finance reported on Oct. 19 that the firm raised its target from $335 to $350 and named Amazon a top pick. Analyst Brian Nowak kept an Overweight rating.

The $350 figure is a forecast, not a company result. Yahoo Finance says Morgan Stanley based it on about 21 times its estimate of Amazon’s 2028 earnings. The note also sets out a bear case of $220 and a bull case of $410. Those scenarios show how wide the analyst’s range is; they do not say where the shares will trade.

What Morgan Stanley expects from AWS

The largest changes in the note concern Amazon Web Services. Morgan Stanley now expects AWS revenue to grow 47% in 2027 and 42% in 2028, up from earlier estimates of 41% and 37%. Yahoo Finance links the revision to Nvidia’s disclosure that AWS was expected to buy and deploy about 2 million of its GPUs across those two years. The GPU figure is a reported expectation, while the revenue rates remain Morgan Stanley projections.

The analyst also expects AWS operating margins of 42% in 2027 and 44% in 2028. That forecast supports his estimate of about $16.50 in Amazon earnings per share for 2028. Neither figure is a reported result.

Three more possible drivers

The other catalysts cover Amazon’s AI products and fulfillment network. Morgan Stanley says greater visibility into Bedrock, its AI model service, could support a higher valuation. It expects Amazon to benefit as AI shopping agents spread, with a possible future partnership involving Meta’s Muse agent. The holiday season is described as an early test, not proof that the idea will work.

The fifth item is warehouse automation. Morgan Stanley estimates that each 10% of Amazon’s global units handled through robotics-enabled fulfillment centers could save $2 billion to $4 billion a year. That is a modeled savings estimate, not a confirmed annual saving.

Yahoo Finance said Amazon shares were up more than 3% in early trading on Oct. 19. That snapshot does not establish the closing move. The target’s five drivers remain assumptions about future growth, margins and cost savings, rather than reported results.