Amazon Earnings Call Shifts Market View on Big Tech AI Spending

CNBC's Jim Cramer says Amazon CEO Andy Jassy's recent earnings call changed Wall Street's view on massive artificial intelligence investments.

For months, investors had questioned whether the 'hyperscalers' enormous spending on AI would ever translate into meaningful returns.

Jassys explanation provided clarity and allowed him to raise Amazon's capex budget from $200 billion to $220 billion while still seeing the company's stock soar to its biggest one-day gain in over a decade.

Cramer said Jassy won investors over by explaining how upfront investments would generate revenue almost immediately and be monetized for decades, citing data centers as an example.