Amazon Unveils Ambitious Cloud Computing Expansion Plans
Amazon.com, Inc. (AMZN) is making significant investments in its cloud computing infrastructure, including a massive addition of NVIDIA graphics processing units (GPUs). The company plans to add 2 million NVIDIA GPUs in 2027-28, building on the 1 million already set for deployment in 2026. These GPUs will be used alongside Blackwell/Rubin and Vera CPUs/memory integration.
Additionally, Amazon will reserve 100,000 GPUs for federal security purposes and adopt NVIDIA AI hardware. This move is part of AMZN's ongoing effort to expand its cloud computing capabilities, particularly in the realm of artificial intelligence (AI) data centers.
The company's capital expenditures are forecasted to reach approximately $700 billion in 2026, with a projected rise towards $1 trillion by 2027. FactSet predicts that Amazon will hit $1 trillion in revenue by 2028, driven primarily by the growth of its cloud computing services, AWS.
AWS is expected to rise from $174 billion in 2026 to around $320 billion in 2028, while retail revenue is forecasted to reach nearly $800 billion. Analyst Andrew Boone has raised his price target for Amazon (AMZN) to $315, citing stronger demand from OpenAI and Anthropic.