Amazon shares rose 3.93% intraday as of 10:30 a.m. ET on October 19, 2026, as Morgan Stanley named the company a top pick and raised its price target to $350 from $335. Analyst Brian Nowak maintained an Overweight rating, outlining a case built around faster cloud growth, artificial intelligence services, shopping agents and warehouse robotics.
Key Takeaways
- Morgan Stanley raised its Amazon price target by $15 while retaining an Overweight rating.
- Higher AWS growth forecasts come alongside larger estimates for Amazon’s capital spending.
- The analyst’s AI shopping and robotics expectations remain projections, not confirmed financial results.
Table of Contents
- Amazon shares rise alongside a higher analyst target
- AWS forecasts rise, but so does the investment bill
- Bedrock, shopping agents and robotics broaden the thesis
- October 29 results are the next scheduled checkpoint
- Conclusion
Amazon shares rise alongside a higher analyst target
Nowak identified five potential catalysts that he believes could support a higher valuation for Amazon. His scenarios range from a $220 bear case to a $410 bull case, compared with the new $350 price target.
Those figures represent Morgan Stanley’s assessment of possible outcomes, not company guidance or guaranteed share prices. The 3.93% stock gain was an intraday snapshot rather than a closing return.
| Item | Details |
|---|---|
| 2027 AWS revenue growth | Morgan Stanley forecast: 47%, raised from 41%. |
| 2028 AWS revenue growth | Morgan Stanley forecast: 42%, raised from 37%. |
| 2027 capital spending | Morgan Stanley forecast: $355 billion. |
| 2028 capital spending | Morgan Stanley forecast: $365 billion. |
AWS forecasts rise, but so does the investment bill
Two of the catalysts center on Amazon Web Services. Morgan Stanley increased its revenue-growth forecasts after Nvidia said it expected AWS to buy and deploy about 2 million of its graphics processing units across 2027 and 2028.
Nowak also projects AWS operating margins of 42% in 2027 and 44% in 2028, supporting his estimate of about $16.50 in Amazon earnings per share in 2028. These are analyst forecasts rather than results Amazon has reported.
The expanded chip deployment also raises the expected cost of building capacity. Morgan Stanley lifted its capital-spending estimates alongside its growth assumptions, making infrastructure investment an important counterpart to the stronger earnings outlook.
Bedrock, shopping agents and robotics broaden the thesis
Beyond cloud infrastructure, Nowak sees greater visibility into Bedrock, Amazon’s AI model service, as another potential valuation catalyst.
He also expects Amazon to benefit as AI shopping agents become more widely used and anticipates a partnership over time with Meta Platforms’ Muse AI agent. That is an analyst expectation, not an announced agreement. He views the holiday shopping season as an initial test.
On fulfillment efficiency, Morgan Stanley estimates that each 10% of Amazon’s global unit volume handled through robotics-enabled fulfillment centers could generate annual savings of $2 billion to $4 billion. The estimate describes potential savings tied to adoption, not savings already realized.
October 29 results are the next scheduled checkpoint
Amazon’s third-quarter 2026 earnings call announcement confirms that the company will discuss its results on October 29 at 2 p.m. Pacific time, or 5 p.m. Eastern time. That scheduling notice does not confirm Morgan Stanley’s forecasts or analyst action.
Conclusion
Amazon’s October 29 results and conference call are the next confirmed opportunity to assess its operating performance against a more ambitious analyst outlook for cloud growth and investment.
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Disclaimer
This FinanceVelix article provides general information, not personalized financial, investment, legal, or tax advice. Market prices, interest rates and economic conditions can change; investments carry a risk of loss. Facts reflect the material available when published and may change. Check important information independently and consult a qualified professional when needed. Mentioning an asset, company, or service is not an endorsement.
