Amazon Stock Jumps 5% as $350 Target Meets New Nvidia Challenge

• Amazon stock rose 4.98% to $262.45 as Morgan Stanley raised its target to $350 and named it a Top Pick
• Amazon’s TorchNeuron tool makes it easier to run PyTorch AI workloads on Trainium chips, strengthening its challenge to Nvidia
• MarketCapOf’s January 1–October 20 comparison shows $5,000 growing to $5,806.36 in Amazon versus $5,770.18 in Nvidia

Amazon stock climbed nearly 5% on Monday as Morgan Stanley backed a stronger outlook for its cloud business. The rally coincided with a software announcement that could make Amazon’s own AI chips easier for developers to adopt. Together, the developments sharpen a question investors have been thinking about. How much of the AI spending boom can AWS capture? Amazon has a new way to attract those workloads, but adoption will determine how much it matters.

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Morgan Stanley’s $350 Target on Amazon Stock Price Puts AWS Growth in Focus

Amazon closed October 19 at $262.45, gaining $12.45, or 4.98%, during regular trading. Morgan Stanley analyst Brian Nowak raised his price target to $350 from $335, maintained an Overweight rating, and designated Amazon a Top Pick. The Amazon stock price prediction implies roughly 33.4% upside from Monday’s close.

It should be noted that Morgan Stanley increased its target and conviction without changing its existing rating. Its outlook centers on faster AWS growth, making cloud demand a key test of whether Amazon can justify a higher valuation

For shareholders, the target offers a benchmark. It does not settle how quickly additional AI demand will translate into revenue and profits.

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TorchNeuron Gives Trainium Chips an Easier Route to Developers

Amazon’s software announcement addresses a practical obstacle, the moving AI workloads between different types of hardware.

According to Amazon’s announcement, TorchNeuron lets developers run existing PyTorch AI code on AWS Trainium chips without rewriting it. The open-source tool aims to make Amazon’s hardware accessible to more developers already working with the widely used framework.

This could lower the effort required to evaluate Trainium alongside Nvidia hardware. Easier migration gives customers more choice, although it does not establish that every workload will run faster or cost less.

The commercial question is whether developers who try the chips subsequently commit substantial workloads to them. That is where a software release could start affecting AWS’s business.

Amazon Narrowly Leads Nvidia in the Return Comparison

The competition also offers a useful stock-market comparison. MarketCapOf’s selected January 1–October 20 window shows a hypothetical $5,000 investment in Amazon growing to $5,806.36, a 16.13% gain. The same starting amount in Nvidia stock reaches $5,770.18, up 15.40%.

Amazon finishes ahead by just $36.18, or approximately 0.72 percentage points, using the underlying dollar results.

This narrow gap describes investment performance over the selected period. It says little about who will win the next AI workload. For Amazon, the more consequential measure will be whether easier access to Trainium turns into sustained customer spending.

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