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Amazon surpasses $3 trillion valuation as AWS margins expand

The company said AWS backlog for future contracted business rose by more than $100 billion in a single quarter.

Reported · Written up by our desk · Previews

Amazon.com shares reached a fresh all-time high and for the first time pushed past a $3 trillion valuation, after investors took recent results as evidence that the payoff from its artificial intelligence spending is starting to show up at AWS. MarketBeat Ratings frames the key shift as a change in market confidence that Amazon’s AI investments are translating into margin and momentum rather than remaining a cost burden.

The article highlights margins as the central reason for the rerating. Instead of AI-driven capacity spending compressing profitability at AWS, AWS revenue growth accelerated to its fastest pace in 18 quarters, and margins expanded.

It also points to demand visibility through AWS backlog. Management reported that the amount of future contracted business at AWS surged by well over $100 billion in a single quarter, signaling customers have already committed to paying for much of that capacity.

MarketBeat Ratings adds that shares have jumped about 20% to new highs following the results, as investors increasingly view the capital expenditure as an investment with an observable return.

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