Amazon Eases AI Spending Fears with Record Revenue Growth

Amazon's recent quarterly revenue growth has helped ease concerns about Big Tech's AI spending, according to market analysts.

The company's cloud unit AWS posted its fastest quarterly revenue growth in more than four years, leading investors to reevaluate their expectations for AI-related expenses.

This reassessment is crucial because the 'AI trade' has been a major driver of US index performance, with confident signals from giants like Amazon and Microsoft helping to support share prices.

However, not all sectors are benefiting equally: the PHLX semiconductor index rose on the day but remains more than 20% below its June 22nd record close, indicating that investors are still sorting winners from hype.