AWS Propels Amazon to $220 Billion AI Expansion

Amazon shares rose roughly 4% on Friday as investors cheered the tech giant's expanding cloud computing business and its increasing focus on artificial intelligence. The stock reached a high of $266.43 in early premarket hours, adding around $110 billion to Amazon's market value.

The company's second-quarter revenue climbed 37% to $42.2 billion, marking its highest growth rate in 18 quarters. AWS operating income jumped 63% to $16.6 billion, accounting for 60% of Amazon's $27.5 billion operating profit.

Amazon raised its planned capital spending for 2026 to about $220 billion, with a focus on AI infrastructure, chips, robotics, and satellites. The company also announced a new commercial development with NVIDIA, which reported that AWS is set to add two million GPUs by early 2029.