Stocks
Amazon Stock Jumps $109 Billion on AWS GPU Expansion Plans
Amazon's stock price surged 3.97% to $266.43 on August 28, adding approximately $109.8 billion in market value.
The jump was driven by Amazon Web Services' (AWS) plans to expand its Nvidia GPU infrastructure, with an additional two million GPUs to be deployed across the globe between 2027 and 2028.
AWS's second-quarter sales rose 37% to $42.2 billion, while segment operating income increased 63% to $16.6 billion.
The expansion is expected to further accelerate AWS's growth, but it also raises concerns about the company's investment hurdle and cash flow generation.