Price forecasts for Amazon stock in 2027 from KeyBanc, TD Cowen, and Truist Securities all converge at $350 per share, representing an increase of about 43% from the September 29 price of $245.46. While the broader average Amazon stock price target sits lower at approximately $329, JPMorgan stands even higher at $365. Can AMZN stock achieve this kind of growth? The bullish outlook for 2027 is primarily anchored by Amazon Web Services (AWS) expansion, a massive $496 billion backlog, and fully reserved AI chips, which collectively fuel the most optimistic Amazon stock price predictions.
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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 $245.46, placing them about 1.7% beneath the GF Value estimate of $249.70 provided by GuruFocus. Despite this minor pullback, the majority of 2027 forecasts for Amazon stock remain unchanged.
Following a second-quarter report where revenue and operating income topped consensus estimates by 2% and 11%, respectively, TD Cowen boosted its target for Amazon stock from $340 to $350. KeyBanc and Truist subsequently issued matching $350 targets, establishing a consensus among three major financial firms regarding the 2027 Amazon stock price prediction.
AI Chips And The Cloud Carry The $350 Case
During the second quarter, AWS growth reached 36.7%, while both Amazon’s artificial intelligence division and its custom chip business crossed annual run rates of $25 billion.
Amazon CEO Andy Jassy addressed these metrics during 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 further expanded its Bedrock platform this week by integrating Anthropic’s Claude Opus 5.5 alongside OpenAI’s GPT-6 Sol and Luna. Furthermore, both Anthropic and OpenAI have secured multi-gigawatt agreements for Trainium, forming a critical component of the 2027 valuation models. Meanwhile, advertising revenue jumped 26% to hit $19.8 billion, giving the 2027 investment thesis a secondary growth driver outside of cloud computing.
What Could Slow The Rally Before 2027
Reaching a $350 share price requires a forward P/E multiple of approximately 33x based on projected earnings, with Wall Street’s 2027 earnings per share (EPS) estimates ranging from $10.47 to $15.04. The primary concern for the equity outlook is elevated spending, as trailing free cash flow has shifted to a negative $7.6 billion outflow. Additional pressure stems from pricing competition among model developers; while lower costs may spur higher volumes of AI queries, the revenue generated per query could decline.
Regarding expenditures, 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.”
Can AMZN stock push through these heavy investments? Jassy anticipates that free cash flow will remain constrained until newly constructed data centers become operational and start generating returns.
Ultimately, will AMZN stock rise to $350? At the time of writing, it still requires a 43% advance. The investment thesis hinges on sustained performance from AWS, and upcoming cloud segment reports will likely determine whether the $329 average target or the $350 forecasts prove more accurate for 2027.