Amazon Stock Soars on Cloud Computing Growth: Is a $15 Trillion Market Cap Within Reach?

Amazon's stock surged 15% after its second-quarter earnings report. The real cash cow driving this growth is Amazon Web Services (AWS), its cloud computing division, which contributed 60% of profit despite making up only 21% of total sales.

AWS' superior profit profile compared to commerce will continue to grow as Amazon invests heavily in its computing capabilities. The company plans to spend $220 billion on data center capital expenditures this year alone, aiming to tap into the huge demand for cloud computing resources.

Amazon CEO Andy Jassy is bullish about AWS' potential, predicting it could generate $1 trillion in revenue someday. If achieved, this would make AWS a significant business by itself, with operating profit of around $391 billion and potentially transforming Amazon into one of the most dominant businesses in the artificial intelligence sector.