Amazon Set to Spend Over $220 Billion on AI Expansion
Amazon's commitment to invest more than $220 billion in its capital expenditure this year is significant, and it's one of the reasons why investors should consider buying the company's stock. According to recent earnings reports, AWS growth is accelerating at a rapid pace, with segment revenue reaching $42.23 billion in Q2 2026, up 37% year over year. The operating margin for this segment is impressive at 39.4%, and Andy Jassy stated that Amazon's AI and chips businesses have each eclipsed run rates of more than $25 billion.
The company's earnings power is also providing the necessary funding to support its buildout, with Q2 operating income rising 43.24% to $27.461 billion. This, combined with a strong balance sheet, including a net debt-to-EBITDA ratio of 0.45 and an interest coverage of 35.17x, suggests that Amazon has the financial muscle to support its ambitious AI plans.
The capex trajectory is another important factor to consider, as H1 2026 capex hit $98.411 billion, with Q2 alone reaching $54.208 billion, up 68.44% year over year. The market is assigning a high probability of 62.5% that 2026 capex will clear $220 billion, which would indicate that customers are driving the demand for Amazon's AI capacity.