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

Projections for Amazon stock in 2027 from TD Cowen, KeyBanc, and Truist Securities all converge at $350 per share, representing an approximate 43% increase over the $245.46 valuation recorded on September 29. Currently, the overall average price target sits lower at around $329, while JPMorgan adopts an even higher outlook at $365. The optimistic 2027 bull thesis for Amazon relies on robust AWS expansion, a massive $496 billion backlog, and fully reserved AI chips, combining to fuel the most aggressive price forecasts.

Also Read: Amazon Stock Could Hit $50,000 From a $25,000 Investment by 2030

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

Where Amazon Shares Trade Right Now

On Tuesday morning, Amazon shares dipped roughly 0.28% to settle at $245.46, placing them about 1.7% below GuruFocus’s GF Value benchmark of $249.70. Despite this slight pullback, the majority of 2027 forecasts remain unchanged.

TD Cowen elevated its price target for Amazon from $340 to $350 following second-quarter revenue and operating income figures that surpassed expectations by 2% and 11%, respectively. KeyBanc and Truist subsequently issued matching $350 targets, bringing the total number of major financial institutions sharing this specific 2027 prediction to three.

AI Chips And The Cloud Carry The $350 Case

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

Amazon CEO Andy Jassy commented on the Q2 earnings call:

“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 integrated OpenAI’s GPT-6 Sol and Luna alongside Anthropic’s Claude Opus 5.5 into Bedrock. Furthermore, agreements involving multi-gigawatt Trainium contracts with Anthropic and OpenAI form a critical component of the 2027 valuation math. Concurrently, advertising revenue jumped 26% to reach $19.8 billion, introducing a secondary growth catalyst alongside cloud services.

What Could Slow The Rally Before 2027

Achieving a $350 share price requires a forward P/E ratio near 33x based on projected earnings, with Wall Street’s 2027 models anticipating per-share earnings ranging from $10.47 to $15.04. Capital expenditures present the primary hurdle for the outlook, as trailing free cash flow has shifted to a $7.6 billion deficit. Additionally, pricing pressures among AI model developers introduce uncertainty, as more affordable models may increase query volumes while reducing revenue per query.

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.”

Addressing whether the stock can absorb these expenditures, Jassy anticipates that free cash flow will remain under pressure until newly constructed data centers become operational and generate revenue.

Ultimately, reaching the $350 threshold demands a 43% advance from current levels. The investment thesis hinges on sustained momentum in AWS, and upcoming financial reports will determine whether the consensus average target of $329 or the more bullish $350 predictions prove more accurate.