TradingKey – Morgan Stanley named Amazon (AMZN) a “Top Pick,” raising its price target from $335 to $350. The bank believes the market has not yet fully priced in AWS’s growth potential and profitability.

Based on higher GPU deployment expectations, Morgan Stanley raised its AWS revenue growth forecasts for 2027 and 2028 from 41% and 37% to 47% and 42%, respectively. The additional computing capacity is expected to help AWS meet more customer demand and support revenue growth.

However, for the stock price, the value of expansion also depends on whether revenue can cover depreciation and operating costs. Morgan Stanley estimates that AWS’s operating margin will reach 44% in 2028, about 2 percentage points higher than its previous forecast,…