Morgan Stanley, one of Wall Street’s preeminent investment banks, recently upgraded its outlook on Amazon.com (NASDAQ: AMZN), assigning a new price target of $300—implying upside of more than 35% from current levels. The firm’s analysts further outlined a bull‐case scenario in which the stock could reach $350, contingent upon stronger macroeconomic conditions and accelerated adoption of cloud and AI services. This optimistic revision is underpinned by upward revisions to Amazon’s earnings projections for 2026 and 2027, growing demand for AWS offerings, and a receding cloud of trade‐policy uncertainty that gripped markets earlier this year.

Wall Street Signals: 35% Upside Potential

The core driver behind Morgan Stanley’s upgrade lies in its refreshed EPS forecasts: $8.00 for fiscal 2026 and $9.00 for fiscal 2027, representing increases of 9% and 6%, respectively, relative to prior estimates. These figures mark a return to the consensus levels seen before April’s spike in U.S. tariff rhetoric toward China, which threatened to dampen technology‐sector growth. With trade tensions now easing, Morgan Stanley describes a “more constructive macro landscape” that justifies higher earnings multiples.

Institutional investors have taken notice: Amazon shares trade near $222, yet the firm’s status as a Top Pick on various equity desks has prompted growing conviction that the stock could breach the $300 threshold. The magnitude of the projected gain underscores renewed confidence in Amazon’s capacity to deliver double‐digit revenue and profit growth over the coming quarters.

AWS: Amazon’s Engine of Growth

Over the past decade, Amazon’s core revenue driver has shifted from e-commerce to cloud computing, and AWS continues to validate that transition. In Q1 2025, AWS generated $29.3 billion in revenue—a 17% year-over-year increase—while maintaining industry‐leading operating margins. These results speak to Amazon’s commitment to invest in compute capacity optimized for AI workloads, including its in-house Trainium 2 chips, which enhance both performance and cost efficiency.

According to a Morgan Stanley survey of more than 300 global CIOs, AWS remains the preferred cloud provider for both traditional infrastructure and advanced AI services. As enterprises accelerate their shift to cloud‐native architectures and machine‐learning deployments, AWS is poised to capture an increasing share of corporate IT budgets—fueling margins and free‐cash‐flow growth.

Strategic AI Alliance with Anthropic

Amazon’s ambition in AI extends beyond infrastructure. The company has deepened its strategic partnership with Anthropic—developer of the Claude family of large‐language models—through a cumulative investment of $8 billion. This collaboration encompasses not only capital infusion but also joint development initiatives, including the construction of the “Project Rainier” data center campus in Indiana. Powered by Trainium chips, these facilities are designed to train next-generation AI models at scale.

Furthermore, integration of Claude into consumer‐facing services—such as Alexa and Prime Video—illustrates Amazon’s end-to-end AI strategy. By embedding advanced conversational AI into its ecosystem, Amazon differentiates its user experiences while positioning itself against Microsoft’s Azure OpenAI partnership and Google’s Vertex AI suite.

Technical Performance: Breakout on the Horizon?

From a technical‐analysis standpoint, AMZN has exhibited robust upside momentum following its trough near $85 in early 2023. The stock has since rebounded more than 150%, approaching its 52-week high of $242.52. Key support lies at approximately $208, with the 50‐day and 200-day moving averages trending upward—signals that analysts interpret as constructive for continuing uptrend.

The Relative Strength Index (RSI) sits in neutral territory, suggesting buyers can still participate without the risk of immediate overextension. Should Amazon overcome the $242–245 resistance zone convincingly, a run toward $270 and beyond would become technically plausible over the next several weeks.

Navigating Risks: Competition, Regulation, Core Retail

Despite the bullish narrative, Amazon faces tangible headwinds. The AI market is fiercely competitive, with Microsoft, Google, and Meta collectively allocating tens of billions to research and development—raising questions about margin pressure for AWS and Anthropic initiatives. In parallel, Amazon’s legacy e-commerce business contends with evolving consumer spending patterns, supply-chain disruptions, and potential new regulatory measures in the U.S. and European Union aimed at platform monopolies.

Capital expenditures on data centers, logistics networks, and content further weigh on near‐term free‐cash‐flow metrics, even as they lay the groundwork for long-term operating leverage. Investors must balance Amazon’s growth investments against the timing of their return on capital and any shifts in global trade policy that could reintroduce cost inflation.

Conclusion and Forward Outlook

Amazon has consistently demonstrated its ability to evolve—from an online retailer to a cloud powerhouse to an AI innovator. Morgan Stanley’s revised $300 price target reflects confidence in the company’s integrated strategy across AWS, AI partnerships, and retail operations. For long-term investors seeking exposure to secular growth themes in cloud computing and artificial intelligence, AMZN remains a compelling candidate.

Looking ahead, key catalysts will include announcements of further capital commitments to Anthropic, AWS quarterly results with updated guidance, and any macro developments that could affect technology spending. With these factors in play, Amazon looks well positioned to drive the next leg of its market‐outperforming journey—potentially delivering its shareholders substantial returns as it approaches new all-time highs.