Morgan Stanley analyst lifts Amazon bull case to $500, sees AWS reaching $1 trillion revenue

Morgan Stanley's Brian Nowak maintains a $335 base-case price target on Amazon but lifts the bull case to $500, driven by a view that AWS can grow to $1 trillion in annual revenue over 8–10 years. Nowak estimates Amazon will add 6–8 GW of compute capacity in 2026/2027 and sees AI margins tracking ahead of the core AWS business at a similar stage. Compute capacity is the key gating factor.