Amazon Raises 2026 Spending to $220 Billion for AI

Shares of Amazon.com Inc. rallied following a second-quarter earnings report that highlighted a surge in AI-driven demand. Amazon Web Services reported 37% growth, reaching $42.4 billion in revenue and marking the division's strongest performance in over four years.

To support the expanding need for AI infrastructure, the company increased its planned capital expenditure for 2026 by 10%, raising the forecast from $200 billion to $220 billion. This $20 billion increase also boosted NVIDIA stock, as the company's processors remain critical for many AWS customers.

Chief Executive Andy Jassy reaffirmed the partnership with NVIDIA, even as Amazon develops its own Trainium processors to provide chip alternatives. Jassy noted that cloud capacity for 2027 and 2028 is already largely reserved, signaling sustained enterprise demand for cloud and AI workloads as Amazon competes with Microsoft and Alphabet.