AWS, Amazon's cloud unit, generated about $42 billion in revenue in the second quarter, up 36% year over year, with an annual run rate of $169 billion. In the same quarter, Amazon's cash capital expenditures totaled just over $53 billion, mostly tied to AWS and generative AI and about $10 billion above AWS's quarterly revenue. Amazon raised its 2026 capex forecast by $20 billion to about $220 billion. Management says demand is already present: AWS's backlog of contracted future revenue reached $496 billion and is growing at a triple-digit rate, and Andy Jassy says Amazon still cannot meet 2026 demand even at this spending level. The author sees this as a bet on timing, with free cash flow likely under pressure until the new data centers and servers start generating returns, so the key thing to watch is whether AWS revenue keeps accelerating alongside capex.
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AMZNcloud computingdata centersartificial intelligence
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Related tickers and likely impact
AMZN
▼ Likely negativeAmazon
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Consumer Discretionary |
| Industry | Broadline Retail |
| Market cap | $2.7T |
| Close on 10/23/2026 | 248.04 |
| Change that session | -0.93% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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