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Amazon stock: Can AWS AI growth outpace spending?

2026-10-08 03:37:24
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Core Points

Amazon Stock Trend: AWS is growing faster than expected

Huge AI spending: Pressure on cash flow

Cloud competitors: Maintain high competition

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Amazon's second-quarter sales increased 37% year-on-year to US$42.2 billion, and operating profit reached US$16.6 billion. Amazon's AI business has an annual revenue operating rate of more than $25 billion and continues to maintain a triple-digit growth rate. Amazon has further expanded its AI product line by launching products such as GPT-6 Astra, Kimi K3, Amazon Quick and Amazon Connect Talent. However, Amazon's huge spending on AI infrastructure has resulted in a net outflow of $7.6 billion in its free cash flow over the past 12 months. Microsoft and Alphabet (Google's parent company) continue to expand their cloud AI business, leaving AMZN shares and AWS facing fierce market competition.

Amazon is expanding its artificial intelligence services through AWS, adding new models and workplace tools, and investors are closely watching what happens in AMZN stock. New products launched in September include OpenAI's GPT-6 Astra (available on Amazon Bedrock), Amazon Quick desktop app, Moonshot AI's Kimi K3, and Amazon Connect Talent. Amazon.com, Inc., AMZN

These new features broaden the scope of services AWS provides to companies building AI systems, coding tools, recruitment services, and automated office software. Amazon said hundreds of thousands of customers already use Bedrock, and its service spending in the second quarter exceeded the global spending in all previous quarters combined. Bedrock now allows customers access to more external models as well as Amazon's own technology, while Connect Talent brings AI voice interviews and candidate evaluation into the hiring process.

AMZN Stock Trend: AWS Growth Strong

Entering the second half of 2026, AWS has shown strong growth momentum. Second-quarter sales increased 37% year-on-year to US$42.2 billion, and operating profit increased to US$16.6 billion from US$10.2 billion. The division's operating profit margin expanded from 32.9% to 39.4%.

Amazon also announced that the annual revenue operating rate of its AI business has exceeded US$25 billion and maintains a triple-digit growth rate. Recent reports on Amazon's $8 billion Nvidia chip financing plan show that the company is exploring new ways to fund its AI infrastructure while expanding data center capacity.

Huge AI spending puts pressure on cash flow

Amazon expects third-quarter net sales to be between $197 billion and $202 billion, and operating profit to be between $22.5 billion and $26.5 billion. However, as property and equipment purchases increased by $66.1 billion, mainly for AI infrastructure, its free cash flow over the past 12 months turned into a net outflow of $7.6 billion.

该公司还警告称内存芯片供应存在波动风险。AWS在欧洲还面临另一个问题,近期关于欧盟云合规期限可能推迟的报道表明,监管机构可能会向主要云提供商(包括亚马逊和微软)施加新的要求。

云竞争对手保持高竞争态势

随着微软和Alphabet扩大各自的AI云业务,亚马逊仍在持续投资。近期芯片和云公司的AI投资活动表明,整个行业对计算能力的需求依然强劲,促使大型科技公司保持高水平的支出。

微软报告称Azure及其他云服务增长了43%,Azure收入在2026财年超过1000亿美元。Alphabet报告称Google Cloud收入为248亿美元,同比增长82%,积压订单达到5140亿美元。对于AMZN股票而言,AWS的增长、利润率以及资本回报仍是关键的衡量指标。

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