Wolfe Research Raises AWS Growth to 44% and Amazon Capex to $280B
AMZN•Wolfe Research raised AWS revenue growth forecasts to 37% in 2026 and 44% in 2027, exceeding consensus by 6% and 19%. It also boosted Amazon’s 2027 capital expenditure estimate to $280 billion, 27% above consensus, and maintained an Outperform rating with a $315 price target implying roughly 29% upside.
1. AWS Revenue Growth Revisions
Wolfe Research increased its AWS revenue growth forecast to 37% for 2026 and 44% for 2027, representing a 6% and 19% premium over consensus estimates, driven by accelerating demand for cloud and AI services.
2. Elevated Capital Expenditure Outlook
The firm lifted Amazon’s 2027 capital expenditure estimate to $280 billion, roughly 27% above consensus, reflecting anticipated spending on data centers, servers and AI infrastructure to support future growth.
3. Anthropic Partnership Impact
Analyst projections indicate Anthropic could contribute about 30% of AWS revenue in 2027, underscoring the strategic importance of generative AI partnerships in expanding Amazon’s cloud market share.
4. Rating and Price Target
Wolfe Research maintained an Outperform rating on Amazon and set a $315 price target, implying approximately 29% upside potential based on the revised growth and capex assumptions.
