Amazon.com Inc. (NASDAQ: AMZN) increased its planned investment in northwest Louisiana to $18 billion from $12 billion, announcing the addition of a third data center campus in Shreveport. The expansion underscores the company’s continued commitment to the region, where it has invested more than $6 billion since 2010.

The three campuses are expected to create up to 750 full-time Amazon data center jobs and support 2,500 additional positions. In addition to the capital expenditure for the facilities, Amazon plans to invest up to $400 million in public water infrastructure.

Infrastructure and Energy Commitments

Amazon stated it will cover the energy infrastructure and grid upgrades required for its data centers. This commitment aims to protect local ratepayers from bearing those costs. The company highlighted that this approach ensures the expansion does not impose financial burdens on the local community’s utility bills.

Market Performance and Technical Outlook

Amazon stock edged higher on Tuesday, gaining 0.15% to trade at $261.69. The share price resilience occurred despite a broader market selloff, with the Nasdaq falling 1.48% and the S&P 500 losing 0.53%. The Consumer Discretionary sector gained about 0.6%, while Technology stocks fell 2.56%, making it the weakest sector of the day.

Technically, the stock trades about 1.5% above its 20-day simple moving average of $257.80 and approximately 10% above its 200-day SMA of $238.02. The 20-day SMA remains above the 50-day SMA, and the 50-day SMA crossed above the 200-day SMA in May, forming a bullish golden cross. The relative strength index stands at 52.91, indicating a neutral reading where the stock is neither overbought nor oversold.

Traders may watch $287 as resistance, near the 52-week high of $287.20. On the downside, $226 could serve as support.

Analyst Outlook

The stock carries a Buy rating with an average price forecast of $331.48 across 50 analysts. The high forecast is $400.00, and the low is $250.00. Recent analyst moves include:

• UBS: Buy (Raises Forecast to $318.00) (July 31)
• Telsey Advisory Group: Outperform (Raises Forecast to $335.00) (July 31)
• Bernstein: Outperform (Raises Forecast to $320.00) (July 31)

Amazon.com Inc (NASDAQ: AMZN) shares faced selling pressure on Monday, trading down 1.07% to $259.85 at the time of publication. The decline occurred alongside broader market weakness, even as prominent financial institutions and investors signaled strong confidence in the company’s long-term growth trajectory.

Morgan Stanley Projects AWS Revenue Potential

Morgan Stanley analyst Brian Nowak maintained an Overweight rating on Amazon with a $335 price target. Nowak framed the current artificial intelligence infrastructure buildout as a high-return opportunity for major cloud providers. He stated that Amazon’s second-quarter commentary reinforced his view that AWS could eventually generate $1 trillion in annual revenue. This figure represents roughly six times the current run rate of about $170 billion.

Nowak’s model relies on two primary drivers: compute capacity expansion and pricing power. He projects capacity additions of 6 to 8 gigawatts over 2026 and 2027, with roughly 8 gigawatts annually beyond that period. He noted that visibility fades further out due to uncertainties around hardware purchasing, power availability, and data center construction speeds.

On pricing, Nowak pegs AWS’s current revenue generation at roughly $8 for every incremental watt of capacity this year. His model suggests that if this figure reaches $12 per watt, AWS could hit $1 trillion in annual revenue by 2035. At $14 to $15 per watt, that milestone could arrive in 2034.

Nowak translated the trillion-dollar revenue estimate into an estimated $300 billion of AWS operating profit. Adding projections for Amazon’s retail operations, he estimated roughly $500 billion in company-wide profit. Using a 21-times earnings multiple and a 10% discount rate, he arrived at a 2027 year-end share price near $500, representing close to 100% upside from current levels.

Institutional Stake Increase

Stanley Druckenmiller’s Duquesne Family Office disclosed in a Friday 13F filing that it increased its Amazon position by more than 1,000% to 541,600 shares. The fund also more than doubled its call options on the stock. Despite these bullish signals from both analysts and major investors, Amazon shares remained under pressure during Monday’s trading session.

What the Numbers Show

The divergence between short-term price action and long-term analyst projections highlights a disconnect between immediate market sentiment and structural growth expectations. While Morgan Stanley models a potential tripling of the share price to $500 by 2027 based on AI-driven cloud expansion, the stock currently trades near $260. This gap underscores the reliance on sustained execution in capacity buildout and pricing power to realize the projected $1 trillion AWS revenue milestone.