Amazon Stock Skyrockets 15% on AI-Fueled Growth

Amazon's stock price surged 15% on Friday after releasing its second-quarter update, alleviating concerns about an artificial intelligence bubble. The retail and cloud giant's AI business is now running at an annual revenue rate of over $25 billion, while Amazon Web Services (AWS) saw a 36.7% year-over-year increase in revenue to $42.2 billion.

The company's backlog of future customer commitments reached an extraordinary $496 billion, and net income received a boost from a $53.4 billion pre-tax accounting gain on its early investment in AI start-up Anthropic. Despite the impressive figures, investors are advised to approach with caution due to ongoing uncertainties from US tariffs to global conflicts.

Markets will likely remain skittish, and Amazon isn't the only tech giant experiencing growth. Microsoft stock jumped 16% on Thursday, adding a staggering $450 billion to its value, while Azure cloud revenues saw significant gains due to booming AI demand.