Amazon Stock Climbs as Morgan Stanley Lifts Target to $300 on AI Momentum

July 11 Amazon.com AMZN shares climbed more than 1% on Friday after Morgan Stanley raised its price target to $300, implying roughly 35% upside.

The firm reiterated Amazon as its top pick and lifted its 2026 and 2027 EPS forecasts by 9% and 6%, respectively. Morgan Stanley cited a more manageable tariff and geopolitical backdrop as a catalyst for reversing prior cuts tied to a steep China?tariff scenario.

Analysts see renewed momentum in Amazon Web Services (AWS), driven by a growing contribution from AI startup Anthropic, projected to deliver $10 billion to $19 billion of revenue by 2027, and resilient core cloud demand amid supply constraints. The team also pointed to Microsoft Azure's non?GenAI strength and a CIO survey showing AWS gaining share from rivals.

Morgan Stanley now models AWS revenue growth of 17%18% annually through 2026, with margins near 37% and a bottom?up profit profile supporting the outlook. The $300 target reflects a roughly 35 multiple on the firm's new EPS estimates.

With AWS set to reaccelerate and e?commerce execution a focus, Amazon's upgraded outlook could underpin further gains.