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Amazon shares jump after AWS AI growth tops expectations
Amazon said its 2026 capex projection rises to $220 billion from $200 billion, but the market still bid the stock up after the Q2 results.
Amazon shares rose the day after its second-quarter earnings release, as investors focused on results that showed its artificial intelligence strategy is working rather than just the pace of spending. Yahoo Finance said the move came despite CEO Andy Jassy increasing the company’s projected capital expenditures this year to $220 billion from $200 billion.
The quarter highlighted AWS momentum, with the fastest growth in the segment in 18 quarters. AWS revenue exceeded an annual run rate of $25 billion in AI revenue, supported by new agreements with companies including Warner Bros. Discovery, Pinterest, Snowflake, and Moody’s, according to Yahoo Finance.
Amazon also reported an annual run rate of $25 billion for its chips business, which includes custom Trainium AI chips, and said it has commitments from AI startups Anthropic and OpenAI, along with Uber Technologies, Pinterest, and other smaller startups.
Broader financial performance was strong as well, with total revenue of $200.6 billion, up 20% year over year. North America sales rose 16% to $116.2 billion, international sales increased 15% to $42.2 billion, and AWS sales climbed to $42.2 billion, up 37% year over year, Yahoo Finance reported.