Amazon's Q2 earnings exceeded expectations, driven by a 37% surge in AWS revenue and aggressive AI infrastructure investment, including $173B in capex and custom chips like Trainium and Graviton. Investors rewarded the stock with a nearly 10% after-hours rise despite negative free cash flow, signaling strong confidence in cloud-hosted AI demand.
Background
The article highlights how capital markets prioritize cloud infrastructure providers over pure-play AI startups, as evidenced by Amazon's stock surge despite heavy spending on data centers and hardware. This reflects a broader trend where investors favor scalable, revenue-generating AI enablers rather than experimental models.
- Source
- TechCrunch
- Published
- Jul 31, 2026 at 06:41 AM
- Score
- 7.0 / 10