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Amazon stock jumps 11% on higher capex outlook, Apple drops 8%
Amazon lifted full-year capital expenditures to $220.0 billion, up from $200.0 billion, with most spending targeted at artificial intelligence, after topping estimates despite volatility.
Amazon shares rose 11% after the company reported results, as growth in its cloud, artificial intelligence and chips divisions helped investors look past a volatile week, according to LiveMint Markets. Apple shares fell 8% after its forecast disappointed investors, even though the company also topped estimates.
LiveMint Markets said Amazon’s outlook also included a full-year capital expenditure increase to $220.0 billion from a prior $200.0 billion estimate. Chief Executive Officer Andy Jassy said most of the spending would go toward artificial intelligence.
The story also pointed to a broader wave of earnings from major cloud providers, or hyperscalers, where Amazon, Microsoft, and Alphabet outlined spending plans that suggest continued demand for chips and related data center equipment. It cited Bloomberg reporting that fears of a potential spending slowdown had weighed on chip and networking companies, but the latest commentary was helping brighten their outlook.
Bloomberg Intelligence analysts, Kunjan Sobhani and Oscar Hernandez Tejada, said in a note that with many large hyperscalers raising or reiterating capital spending plans, the likelihood of upside to 2026 to 2027 consensus for computing and networking chipmakers is increasing, LiveMint Markets reported.