Amazon shares jump after cloud and AI revenue growth

Amazon shares rose by more than seven percent after hours on Thursday after the company reported higher second-quarter revenue, with growth in cloud computing, artificial intelligence and chips.

Amazon said revenue increased 20 percent from a year earlier to more than $200 billion. Amazon Web Services revenue rose 37 percent to $42.2 billion.

The company said two AI-related divisions, its AI cloud and chips businesses, grew by triple-digit percentages and each exceeded $25 billion in annual revenue run rates.

Amazon chief executive Andy Jassy told analysts that AWS was “booming” and said the cloud division could “very possibly be a trillion-dollar annual revenue business” over time.

Jassy denied that Amazon was abandoning work on its own frontier AI model, saying: “We are pursuing our own frontier model.” He said AWS and Amazon could still have a successful business without one.

Amazon also increased its estimate for 2026 capital expenditure to $220 billion from a previous estimate of $200 billion.

Major US technology companies are spending large sums on AI data centers, chips and computing infrastructure. Amazon, Microsoft, Alphabet and Meta are collectively on track to spend about $700 billion on those areas this year.