$AMZN continues to demonstrate why scale and infrastructure remain decisive advantages in the AI era.

In the second quarter, Amazon delivered $200.6 billion in revenue, up 20 percent year-over-year. AWS accelerated to 36.7 percent growth — its fastest pace in 18 quarters — reaching a $169 billion annualized run rate. Both the AI business and the custom chips business each surpassed $25 billion in annualized revenue, growing at triple-digit rates.

The defining strength of Amazon is its ability to reaccelerate cloud growth at massive scale while simultaneously building proprietary silicon and AI infrastructure. Few companies can expand capacity this aggressively, improve margins, and still report a backlog of $496 billion in contracted AWS demand.

Capital spending has been raised to approximately $220 billion for the year as memory and data center costs rise. Management has been clear that even at this level, capacity will remain constrained through 2026 and likely into 2027.

While free cash flow is temporarily pressured by these investments, the combination of accelerating AWS growth, high-margin advertising, and a still-expanding retail flywheel gives Amazon one of the most diversified and durable platforms in technology.

For $AMZN, the opportunity is not simply participating in AI. It is controlling a critical layer of the infrastructure that powers it.
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