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

Forecasts for Amazon stock in 2027 from firms like TD Cowen, KeyBanc, and Truist Securities all converge on a target of $350 per share, representing about a 43% increase over the $245.46 price recorded on September 29. The current average price target for Amazon stock sits lower at approximately $329, while JPMorgan takes a more bullish stance at $365. Can AMZN stock achieve this level of growth? The bullish outlook for Amazon stock in 2027 is primarily supported by expansion in AWS, a $496 billion backlog, and fully reserved artificial intelligence chips, combining to form the most optimistic projections for 2027.

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

Where Amazon Shares Trade Right Now

Amazon shares experienced a slight decline of roughly 0.28% to reach $245.46 on Tuesday morning, positioning them about 1.7% below the GF Value estimate of $249.70 provided by GuruFocus. This minor pullback has not altered the majority of 2027 forecasts for Amazon stock.

Following second-quarter revenue and operating income figures that surpassed estimates by 2% and 11% respectively, TD Cowen increased its Amazon stock price target from $340 to $350. KeyBanc and Truist subsequently announced identical $350 targets, meaning three major financial institutions now share the same 2027 projection for Amazon stock.

AI Chips And The Cloud Carry The $350 Case

AWS achieved a growth rate of 36.7% during the second quarter, while Amazon’s individual chip and artificial intelligence operations both surpassed a $25 billion annual 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.”

AWS 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 form a critical component of the 2027 financial models for Amazon stock. Advertising revenue also experienced a 26% increase to reach $19.8 billion, providing the 2027 narrative for Amazon stock with an additional revenue stream alongside cloud computing.

What Could Slow The Rally Before 2027

Achieving a $350 share price requires a forward P/E ratio of roughly 33x based on anticipated earnings, with Wall Street’s 2027 projections for Amazon stock utilizing EPS estimates ranging between $10.47 and $15.04. Capital expenditure represents the primary vulnerability for the current outlook, as trailing free cash flow has shifted to a negative outflow of $7.6 billion. Additionally, pricing competition among model providers presents a challenge, as more affordable AI models can increase call volume while simultaneously reducing revenue per individual call.

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.”

Regarding whether AMZN stock can overcome these expenditures, Jassy anticipates that free cash flow will remain under pressure until newly constructed data centers become operational and generate returns.

Consequently, the question remains whether AMZN stock will successfully climb to $350. At the time of writing, a 43% gain is still required. The setup for Amazon stock remains viable if AWS growth is sustained, and upcoming AWS performance reports will likely determine whether the $329 average target or the $350 predictions for 2027 prove to be more accurate.

?Frequently Asked Questions

01What is the 2027 price target for Amazon stock?

Major financial firms including TD Cowen, KeyBanc, and Truist Securities have set a 2027 price target of $350 for Amazon stock, while JPMorgan estimates a target of $365.

02What are the main drivers behind the Amazon stock bull case for 2027?

The optimistic outlook is driven by strong AWS growth, a $496 billion backlog, fully booked AI chips, multi-gigawatt Trainium agreements, and growing advertising revenue.

03What risks could slow down the rally for Amazon shares?

Key risks include high capital expenditures—such as anticipated cash CapEx of approximately $220 billion in 2026 driven by memory costs—temporary pressure on free cash flow, and pricing competition among AI model providers.

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