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AWS Fueling Amazon's Record-Breaking Growth Spurt

Guavy AI Editorial Team
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AMZN
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Amazon's stock surged 10% in premarket trading on Friday after the e-commerce giant reported stronger-than-expected results for its second quarter. The company's Amazon Web Services (AWS) cloud business was a key driver of growth, with revenue increasing by 36.7% year-over-year to $42.2 billion.

AWS added over $4.6 billion in revenue from the previous quarter, more than its largest increase ever. This growth was fueled by demand for AI and cloud computing services, which continue to outstrip server capacity.

Amazon's custom chip business is also growing rapidly, with a triple-digit year-over-year rate. The company plans to spend more on AI infrastructure, increasing its capital expenditures to around $220 billion.

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