Amazon Stock Surges as AI Investments Pay Off
Amazon's stock price has surged to over $265 after the company's second-quarter 2026 earnings report revealed a 20% revenue growth and a significant profit boost, driven in part by gains on its artificial intelligence investments.
The e-commerce giant reported net sales of $200.6 billion for Q2 2026, exceeding analysts' expectations of $196.5 billion. Operating income rose 43% year over year to $27.5 billion, with a notable increase in the North America retail unit and Amazon Web Services (AWS).
AWS revenue grew 37% year over year to $42.2 billion, beating expectations and contributing significantly to Amazon's overall growth. The company also reported that its AI and custom chip businesses surpassed a $25 billion annualized revenue run rate in the latest quarter.