Will AWS and AI drive Amazon stock to $350 by 2027?

Price forecasts for Amazon stock in 2027 from firms like TD Cowen, KeyBanc, and Truist Securities all converge at $350 per share, representing roughly a 43% increase over the $245.46 price recorded on September 29. While the broader average Amazon stock price target sits lower at approximately $329—with JPMorgan projecting an even higher $365—investors are weighing whether AMZN can achieve this level of growth. The optimistic outlook for 2027 is primarily anchored by accelerating AWS expansion, a substantial $496 billion backlog, and fully reserved AI chips.

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

Where Amazon Shares Trade Right Now

Amazon shares experienced a slight decline of about 0.28% to trade at $245.46 on Tuesday morning, putting them roughly 1.7% below GuruFocus’s estimated GF Value of $249.70. This minor pullback has left existing Amazon stock forecasts for 2027 largely unchanged.

Following a second-quarter earnings report where revenue and operating income topped consensus estimates by 2% and 11%, respectively, TD Cowen adjusted its price target upward from $340 to $350. KeyBanc and Truist subsequently issued matching $350 targets, establishing a consensus among three major financial institutions for the 2027 prediction.

AI Chips And The Cloud Carry The $350 Case

During the second quarter, AWS growth reached 36.7%, while Amazon’s dedicated chip and artificial intelligence operations both surpassed a $25 billion annualized run rate.

Addressing the Q2 earnings call, Amazon CEO Andy Jassy stated:

“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.”

Additionally, AWS integrated OpenAI’s GPT-6 Sol and Luna alongside Anthropic’s Claude Opus 5.5 into its Bedrock service. Both Anthropic and OpenAI have secured multi-gigawatt Trainium commitments, which form a crucial component of the 2027 valuation thesis. Meanwhile, advertising revenue advanced 26% to reach $19.8 billion, introducing an additional growth catalyst outside of cloud computing.

What Could Slow The Rally Before 2027

Reaching a $350 share valuation implies a forward price-to-earnings (P/E) multiple of approximately 33x projected earnings, with Wall Street’s 2027 models anticipating earnings per share (EPS) between $10.47 and $15.04. Elevated capital expenditures remain the primary risk to the outlook, as trailing free cash flow has shifted to a $7.6 billion outflow. Furthermore, aggressive pricing competition among foundational model developers presents challenges, as reduced pricing for AI queries can diminish revenue per call.

Regarding future spending, 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 begin generating returns.

Ultimately, whether AMZN can attain the $350 milestone depends on closing a current 43% gap. The investment case relies heavily on sustained AWS expansion, meaning upcoming performance reports will determine whether the $329 average target or the $350 forecasts prove more accurate.

Frequently Asked Questions

What is the 2027 price target for Amazon stock by major analysts?

TD Cowen, KeyBanc, and Truist Securities all share a $350 price target for Amazon stock in 2027, while JPMorgan maintains a target of $365. The broader average analyst target sits at approximately $329.

What is driving the bullish Amazon stock predictions for 2027?

The bullish outlook is supported by robust AWS growth (which hit 36.7% in Q2), a $496 billion backlog, fully booked AI chips, multi-gigawatt Trainium agreements with AI leaders like OpenAI and Anthropic, and a 26% increase in advertising revenue.

What are the main risks or headwinds for Amazon’s stock?

Heavy capital expenditures—including projected cash CapEx of approximately $220 billion in 2026 driven by rising memory costs—have pushed trailing free cash flow into a $7.6 billion outflow. Intense price competition among AI model providers also poses a risk to margins.

How did AWS perform in the most recent quarter?

AWS revenue growth accelerated for the fifth consecutive quarter to 36.7% year-over-year, with Amazon’s respective chip and AI divisions each surpassing a $25 billion annualized run rate.

What are the projected earnings per share (EPS) figures used in 2027 models?

Wall Street’s Amazon stock models for 2027 incorporate EPS estimates ranging between $10.47 and $15.04.

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