Amazon Jumps 5% After Morgan Stanley Names It Top Pick With $350 Target
Yahoo Finance ·
Amazon shares advanced 5% following Morgan Stanley's decision to designate the stock as a Top Pick while lifting its price target to $350 from $335. Analyst Brian Nowak raised AWS revenue growth projections to 47% for 2027 and 42% for 2028, driven by expectations that NVIDIA GPUs will be deployed extensively. Nowak projects 2028 earnings per share at about $16.50, sitting roughly 24% above the analyst consensus of $13.26. Meanwhile, Amazon's total operating margin expanded from 5.3% in 2021 to 11.2% in 2025. Capital expenditures are forecasted to climb to $355 billion in 2027 and $365 billion in 2028, up from roughly $220 billion projected for this year. Investors will closely monitor AWS growth rates when Amazon releases its third-quarter financial results after the market close on October 29.
AI 시장 분석
Amazon shares surged 5% after Morgan Stanley named it a top pick and raised its price target to $350. Driven by the large-scale adoption of NVDA GPUs, growth forecasts for AWS for 2027-2028 were revised upward, drawing a positive market response. Investors should closely monitor whether AWS growth accelerates during the upcoming Q3 earnings release on October 29.
상승 영향
- AI — Amazon's massive adoption of NVDA GPUs is expected to raise AWS revenue growth rates for 2027 and 2028 to 47% and 42% respectively, driving expanded demand for AI infrastructure.
DYAX 전담 분석
Morgan Stanley analyst Brian Nowak significantly raised AWS revenue growth forecasts based on projections of deploying 2 million NVDA GPUs. He forecasted sharp earnings improvements, setting the 2028 earnings per share (EPS) at $16.50, which is 24% higher than the consensus of $13.26.
However, heavy capital expenditures (CAPEX) expected at $355 billion in 2027 and $365 billion in 2028 remain risk factors. Attention should be paid to whether actual AWS revenue growth can exceed 37% and to the key metrics in the October 29 earnings release.
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