Overview
- Amazon shares rose 5.6% to $233.65 after Thursday's shareholder letter detailed concrete AI revenue and chip figures.
- AWS AI services are running at more than a $15 billion annualized pace, a run-rate that reflects the yearly revenue implied by recent sales.
- Jassy said Amazon’s in-house chips now exceed a $20 billion run-rate and could reach about $50 billion if sold to outside customers, with Trainium2 largely sold out and expected to lower AWS costs and lift margins.
- Amazon reaffirmed roughly $200 billion in 2026 capital spending focused on AI data centers and related hardware, with substantial customer commitments and most payback expected in 2027 and 2028.
- The update comes as Barclays projects hyperscaler spending could peak near $1 trillion in 2028, even as Nvidia reports strong data-center results despite a recent stock pullback.