Amazon's Earnings Rescue AI Trade with Record Revenue Growth
Amazon's latest earnings report sent shockwaves through Wall Street on Friday, as shares of the tech giant surged by over 15% in a single day.
The rally was fueled by Amazon's strongest quarterly revenue growth in over four years, which directly addressed concerns that massive spending on AI infrastructure might take too long to pay off.
Amazon Web Services (AWS) revenue jumped 37%, its fastest pace in nearly five years, easing worries about overinvestment in the sector. Management disclosed for the first time that the company's AI business and custom chip business had each surpassed a $25 billion annual revenue run rate, with both growing triple digits year-over-year.
The news also brought positive surprises from Amazon's e-commerce segment, which saw North America revenue rise 16% and international revenue climb 15%, both marking their fastest growth in five years. The company credited faster delivery speeds and a 26% jump in advertising revenue for the gains.