Amazon Stock: Could AWS and AI Push Shares to $350 in 2027?

Projections from TD Cowen, KeyBanc, and Truist Securities all point to a $350 share price for Amazon by 2027, representing about a 43% increase over the September 29 price of $245.46. While the broader average target sits lower at approximately $329, JPMorgan maintains an even higher outlook at $365. The most optimistic forecasts for 2027 are primarily supported by robust AWS expansion, a massive $496 billion backlog, and fully booked AI chip capacity.

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Amazon Stock Price Target, AWS Growth And AI Upside In 2027

Where Amazon Shares Trade Right Now

On Tuesday morning, Amazon shares experienced a minor decline of about 0.28% to land at $245.46. This places the stock roughly 1.7% below GuruFocus’s GF Value estimate of $249.70, though this slight downward movement has left most 2027 forecasts unchanged.

Following second-quarter results that surpassed revenue and operating income expectations by 2% and 11% respectively, TD Cowen elevated its price target from $340 to $350. KeyBanc and Truist subsequently aligned with identical $350 targets, establishing a consensus among three major financial institutions for 2027.

AI Chips And The Cloud Carry The $350 Case

During the second quarter, AWS achieved 36.7% growth, while both Amazon’s internal chip division and its broader artificial intelligence operations each surpassed an annual run rate of $25 billion.

During the Q2 earnings call, CEO Andy Jassy shared the following remarks:

“Revenue growth of 36.7% year-over-year, accelerating for the fifth straight quarter, our fastest growth in 18 quarters back when AWS was less than half its current revenue size. We added over $4.6 billion in revenue quarter-over-quarter, about 80% more than our largest increase ever. Our backlog stands at $496 billion, growing triple digits year-over-year.”

AWS further expanded its Bedrock platform this week by integrating OpenAI’s GPT-6 Sol and Luna alongside Anthropic’s Claude Opus 5.5. Furthermore, multi-gigawatt Trainium agreements with Anthropic and OpenAI serve as a foundational element of the 2027 projections. Meanwhile, advertising revenue advanced 26% to reach $19.8 billion, providing Amazon with a secondary growth driver independent of cloud services.

What Could Slow The Rally Before 2027

Achieving a $350 valuation requires a forward P/E multiple of roughly 33x based on projected earnings, with Wall Street models estimating EPS between $10.47 and $15.04 for 2027. Elevated spending remains the primary concern for the outlook, particularly as trailing free cash flow has shifted to a $7.6 billion deficit. Additionally, pricing pressure among AI model providers introduces risk, as lower-cost models may increase usage volume while simultaneously reducing revenue per individual call.

Addressing capital expenditures, Jassy noted:

“We now believe we will spend approximately $220 billion in cash CapEx in 2026. The higher cost of memory pushing this number up from our prior estimate of about $200 billion. Even at that amount, we will still not have enough capacity to meet all the demand we have in 2026, and I believe this dynamic will also be true in 2027, too. In fact, the demand we already have for 2028 is striking.”

Jassy anticipates that free cash flow will remain constrained until newly constructed data centers become operational and generate revenue.

Ultimately, whether AMZN reaches $350 depends on closing a current 43% valuation gap. Sustained momentum in AWS will be critical, and upcoming performance reports will determine whether the $329 average target or the more aggressive $350 forecasts prove to be accurate.

?Frequently Asked Questions

01What is the price target for Amazon stock in 2027?

Several major financial firms, including TD Cowen, KeyBanc, and Truist Securities, have set a 2027 price target of $350 for Amazon shares. The overall average target is around $329, while JPMorgan estimates a higher target of $365.

02What is driving the bullish outlook for Amazon?

The optimistic forecasts are driven by strong AWS growth (which grew 36.7% in Q2), a $496 billion backlog, fully booked AI chip capacity, and a 26% increase in ad revenue.

03What are the main risks to Amazon’s stock rally?

Key risks include heavy capital expenditure—such as an expected $220 billion in cash CapEx for 2026 driven by higher memory costs—which has pushed trailing free cash flow into a $7.6 billion outflow, as well as pricing pressures among AI model providers.