Morgan Stanley Remains Bullish on Amazon.com (AMZN), Cites Growing Investment in Robotic and AI-Powered Fulfillment Centers

Man GLG holds $811.49 million worth of Amazon.com, Inc. (NASDAQ:AMZN) stock, representing 1.55% of its 13-F portfolio as of Q2 2025. The company is one of Man GLG’s list of 10 stock picks with the highest upside potential.

On October 22, 2025, Morgan Stanley reiterated its “Outperform” rating on Amazon.com, Inc. (NASDAQ:AMZN) with a $300 price target.

The investment firm’s bullish stance reflects Amazon.com, Inc. (NASDAQ:AMZN)’s increasing investment in robotic and AI-powered fulfillment centers, which could yield $2-4 billion in annual savings by 2027. With the company scaling to around 40 next-generation robotic sites, including its prototype facility in Shreveport, Louisiana, it looks on track to achieve major warehouse efficiencies.

The firm notes that about 10% of Amazon.com, Inc. (NASDAQ:AMZN)’s global units could be handled by these automation-driven warehouses, reducing fulfillment costs by up to 40%. This could also mean nearly 160,000 U.S. workers would not need to be hired.

Meanwhile, Morgan Stanley believes Amazon.com, Inc. (NASDAQ:AMZN)’s GenAI-led innovations in retail are underappreciated, while acknowledging that AWS remains the company’s key short-term growth driver.

Amazon.com, Inc. (NASDAQ:AMZN) is a global online marketplace operator, a maker of consumer electronics, and a provider of digital streaming and cloud computing services through Amazon Web Services (AWS).

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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