Amazon Posts Best Quarter in Years Amid AI-Fueled Cloud Growth

Amazon reported its best quarter in years with 20% revenue growth, marking its fastest clip in five years.

The company's acceleration is largely attributed to the growth of Amazon Web Services (AWS), which saw a 37% increase in revenue, outpacing peers Microsoft Azure and Google Cloud.

AWS' surge can be linked to the explosion of artificial intelligence (AI) driving demand for cloud computing. The company expects this momentum to continue as it forecasts $200 billion in capital expenditures, much of which will go towards data centers to run AWS and AI compute.

The North America segment also saw its fastest growth in nearly four years, with international sales up 15% excluding foreign exchange, the fastest pace in that segment since Q1 2021.