Morgan Stanley reaffirmed its “Overweight” rating and named Amazon its top pick.
Powered by increasing Nvidia GPU shipments, Morgan Stanley analysts predict AWS will operate under the “rule of 90” between 2027 and 2028.
Morgan Stanley raised the price target on Amazon from $335 to $350.
Amazon.com Inc.’s (AMZN) stock price rose nearly 5% on Monday and was on pace to post its best day in nearly three months after Morgan Stanley reaffirmed its “overweight” recommendation on the stock and raised its price target on the stock.
Morgan Stanley analyst Brian Nowak raised the company’s price target on AMZN from $335 to $350, a 40% upside from Friday’s closing price, while maintaining an overweight on the stock and upgrading it to “Top Pick” status, according to the research report viewed by TheFly.
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Nowak noted that AWS’s growth and profits are “underestimated” and expects year-over-year growth of 47% and 42% in 2027 and 2028, respectively, largely to account for Nvidia’s (NVDA) indication that AWS will deploy 2 million additional NVIDIA GPUs across its global infrastructure over those two years.
The company sees AWS operating under the “rule of 90” in 2027-2028, paving the way for Amazon to generate earnings of $16.50 per share in 2028.
At the same time, Amazon also signed an agreement to finance a nuclear project in Indiana.
Amazon funds Indiana nuclear project
X-energy (XE) and American Electric Power (AEP) announced a joint development agreement Monday to evaluate the feasibility of a 960-megawatt small modular reactor project in Indiana, with Amazon (AMZN) supporting development of the project through a financing agreement.
The proposed facility is expected to house a 12-unit Xe-100 plant located near the former Breed Generating Station in Sullivan County, Indiana, repurposing an existing brownfield owned by AEP for advanced nuclear power capabilities.
As part of the deal, Amazon is expected to provide milestone-based capital to conduct initial feasibility studies. The initiative marks the second commercial development born from the alliance between X-energy and Amazon, which aims to deploy more than 5 gigawatts of new nuclear capacity on the national power grid by 2039, alongside the Cascade Advanced Energy Facility project in Washington state with Energy Northwest.
AMZN stock: detail view
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