Amazon reported record second-quarter financial results. Amazon Web Services (AWS) revenue grew 36.7% year-over-year, marking its fastest expansion in 18 quarters.
The company’s AI and custom chip businesses each surpassed a $25 billion annual revenue run rate. These results eased investor concerns regarding the returns on significant artificial intelligence investments.
Amazon raised its 2026 capital expenditure forecast from $200 billion to $220 billion. The increased budget will fund additional data center capacity for cloud and AI infrastructure.
Amazon shares surged over 12% in pre-market trading following the announcement. The rally added to technology sector momentum following strong quarterly results from Microsoft earlier this week.