[REVISION HISTORY]

Amazon AI expansion drives $3T market cap and AWS growth

Updated 17 times since CLSTR started tracking revisions of this situation.

What changed

2026-09-04 02:11 UTC → 2026-09-16 04:45 UTC · added ~~removed~~

Amazon’s AI-driven expansion remains the centerpiece of the 2026 tech landscape. Following a Q2 2026 earnings report that topped Wall Street expectations, the company reported revenue of $200.6 billion and net income of $62.6 billion. Revenue growth reached 20%, its fastest rate in five years, largely attributed to Amazon Web Services (AWS). AWS revenue grew 37% year-over-year to $42.2 billion, ~~with an AWS backlog reaching $496 billion and operating margins reaching approximately 39%.~~ driven by the expansion of artificial intelligence. This performance pushed Amazon’s market value past the $3 trillion threshold, joining an elite group of tech giants including Nvidia, Apple, Alphabet, and Microsoft. To sustain this momentum, Amazon ~~lifted its 2026~~ has forecasted approximately $200 billion in capital ~~expenditure outlook to $220 billion,~~ expenditures, primarily for data centers and AI infrastructure. While Amazon continues to use over a million Nvidia GPUs, its Trainium chips—including the mass-produced Trainium 3—position it as a growing rival to Nvidia. CEO Andy Jassy noted that Amazon’s internal chip business, if treated as a standalone entity, would generate over $25 billion in annual revenue and is currently experiencing triple-digit growth. ~~Looking ahead,~~ Morgan Stanley analyst Brian Nowak has issued a bullish forecast, projecting that Amazon’s stock could nearly double to $500 per share by the end of 2027. This is driven by the anticipated growth of AWS, which Nowak suggests could reach $1 trillion in revenue within 8 to 10 years. To support this, Amazon is expected to add 6GW of capacity in 2026 and 8GW in 2027. The model ~~further~~ assumes that increasing revenue per unit of power from ~~the current~~ $8 per watt to $12 per watt could be a key driver in reaching the $1 trillion milestone by 2035. ~~Furthermore, AWS has announced a major expansion of its partnership~~ Additionally, institutional interest remains high, with ~~Nvidia, planning to deploy an additional 2 million Nvidia GPUs—including Blackwell Ultra, Rubin, and Rubin Ultra models—across its global infrastructure during 2027~~ hedge funds and ~~2028.~~ institutional investors maintaining a 72.20% ownership stake.

Versions

Only revisions since CLSTR began indexing content versions appear here. Select a version to see what changed compared to the one before it.