Big Beautiful Bill Fuels Amazon's (AMZN) GenAI Strategy - Here's What Analysts Expect

Amazon.com, Inc. (NASDAQ:AMZN) is one of the AI Stocks Everyone Is Watching Closely. On July 28, Morgan Stanley reiterated the stock as “Overweight” with a $300 price target. The firm believes that Amazon is the largest beneficiary of the big beautiful bill passed by Congress.

Not just Amazon, Morgan Stanley believes that the One Big Beautiful Bill has the potential to pull forward billions of dollars of cash flow for major technology companies.

In an investor note, the analysts noted that Amazon is expected to receive $15B of annual free cash flow benefit between 2025 and 2027 and $11B in 2028. According to them, most of the benefit will be reinvested in Amazon Web Services and generative AI (GenAI) offerings in retail.

However, even if it invests 50% of the annual cash flow, it will be able to drive a “much faster path to billions of annual automation savings.”

“We see AMZN capturing ~$15bn/year in tax benefits. While most will be re-invested in AWS, even investing 50% of the annual cash flow benefit paints a much faster path to billions of annual automation savings.”

Amazon.com Inc. (NASDAQ:AMZN) is an American technology company offering e-commerce, cloud computing, and other services, including digital streaming and artificial intelligence solutions.

While we acknowledge the potential of AMZN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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