Amazon's Stock Surges 15% Amid Strong AWS Revenue Growth
WHO:
Techmeme - Amazon.com Inc. is the company involved.
Yahoo Finance UK - Andy Jassy is the CEO of Amazon.
WHAT:
Yahoo Finance UK - Amazon's custom chip business is growing at a triple-digit year-over-year rate.
Yahoo Finance UK - Amazon plans to raise its capital expenditures to approximately $220 billion, up from its prior guidance of around $200 billion.
Yahoo Finance UK - AWS is now running at about a $170 billion annual revenue run rate, which is more than four times larger than it was in 2019.
Techmeme - Amazon shares closed up 15.32%, marking the biggest one-day jump since April 2012.
Yahoo Finance UK - AWS generated $42.2 billion in second quarter revenue, up 36.7% year over year.
Yahoo Finance UK - Amazon's AI and custom chip businesses surpassed a $25 billion annualized revenue run rate.
Yahoo Finance UK - Amazon added over $4.6 billion in revenue quarter over quarter, about 80% more than its largest increase ever.
Yahoo Finance UK - Amazon's backlog stands at $496 billion, growing triple digits year over year.
Yahoo Finance UK - AWS is running at about a $170 billion annual revenue run rate.
WHERE:
Yahoo Finance UK - The context of the revenue growth is related to Amazon's cloud business, which operates globally.
WHEN:
Yahoo Finance UK - The company plans to raise its capital expenditures to approximately $220 billion, up from around $200 billion.
Yahoo Finance UK - Expansion for 2027 is already largely booked into 2028.
WHY:
Yahoo Finance UK - Demand for AI and cloud computing continues to outstrip server capacity, with 2027 planned expansion already largely booked into 2028.
Yahoo Finance UK - The strong results were driven by accelerating cloud growth at AWS.
Yahoo Finance UK - Demand for AI and cloud computing continues to outstrip server capacity.
HOW:
Yahoo Finance UK - Amazon plans to spend more on AI infrastructure to support its growth.
(UPDATED August 1, 2026 05:58 UTC)
Amazon's custom chip business is experiencing remarkable growth, with a triple-digit year-over-year increase. The company plans to raise its capital expenditures to approximately $220 billion, up from the previous estimate of around $200 billion, as its AWS division now boasts an annual revenue run rate of about $170 billion, more than quadrupling its size since 2019. This surge in demand for AI and cloud computing has led to server capacity being stretched thin, with much of the planned expansion for 2027 already booked into 2028.
--
(UPDATED July 31, 2026 22:28 UTC)
Amazon.com Inc. saw its shares close up 15.32%, marking the biggest one-day jump since April 2012, as the company reported impressive second quarter results with AWS generating $42.2 billion in revenue, a 36.7% increase year over year. The strong performance is attributed to accelerating cloud growth at AWS, which is running at about a $170 billion annual revenue run rate, while Amazon's AI and custom chip businesses have surpassed a $25 billion annualized revenue run rate. Looking ahead, Amazon plans to raise its capital expenditures to approximately $220 billion, with expansion for 2027 largely booked into 2028, as demand for AI and cloud computing continues to outstrip server capacity.