Could Amazon’s Stock Push To $300? Analysts See Meaningful AWS Upside

Amazon.com Inc. (NASDAQ: AMZN) is attracting significant attention as analysts project substantial growth in its Amazon Web Services (AWS) division, sparking speculation about the stock's potential to reach $300. Recent analyst reports highlight AWS's expanding capacity and strategic investments in artificial intelligence (AI) infrastructure as key drivers for future valuation.

The stock currently trades around $222, reflecting a modest year-to-date gain of 1.27%, and a significant underperformance on broader markets. However, bullish sentiment surrounding AWS suggests a potential for more significant upside. This optimism is fueled by expectations of accelerated growth in AWS, driven by both increased capacity and heightened demand for cloud services related to generative AI.

Mizuho initiated coverage of Amazon with an “Outperform” rating and a $300 price target, suggesting approximately 37% upside from current levels. Their analysis anticipates AWS growth accelerating to 22% in 2026, exceeding the Bloomberg consensus estimate of 20%.

This acceleration is expected as new capacity comes online in the second half of 2025 and throughout 2026. Key to this outlook is Amazon's partnership with generative AI client Anthropic, which is expected to drive heightened compute demand and contribute to meaningful upside for AWS.

Morgan Stanley also shares a positive outlook, projecting AWS's growth rate could exceed 20% by 2026. This growth is attributed to the increasing adoption of cloud services and the rise of generative AI workloads.

Morgan Stanley sets a base case price target of $300 per share and an optimistic scenario reaching $350 per share. The firm notes a shift in Amazon's capital expenditure strategy, with AWS investments now increasing to approximately $33 billion in 2025 and expected to continue growing in 2026.

Amazon's commitment to expanding its AI and cloud infrastructure is evident in its recent investments. AWS announced plans to invest approximately $11 billion in Georgia to enhance its cloud computing and AI infrastructure. This expansion will support the growing demand for advanced data centers required for AI-driven innovations and cloud services, projected to create at least 550 new high-skilled jobs.

Further demonstrating its global expansion strategy, AWS plans to invest $4 billion in Chile to establish its first data centers and cloud infrastructure in the country. This initiative marks AWS's third cloud region in Latin America, following Brazil and Mexico, and is expected to be operational by the second half of 2026. The project aims to provide significant computing power, including support for generative AI services.

The market's reception to these developments has been cautiously optimistic. Amazon's stock has experienced intraday fluctuations, with a recent high of $222.94 and a low of $219.49. The positive outlook from analysts, especially concerning AWS's growth potential, has contributed to favorable sentiment among markets.

The strategic emphasis on expanding cloud and AI infrastructure, coupled with optimistic projections from financial institutions like Mizuho and Morgan Stanley, points to a potentially promising trajectory for Amazon's stock.

The anticipated growth in AWS, supported by substantial investments and key partnerships, is expected to significantly influence Amazon's valuation in the coming years, and whether markets begin to price this growth in could lead to new levels.