Amazon $AMZN jumps 12% as AWS grows 37%, capex guide hits $220B

$AMZN moved 12% higher in premarket trading after Amazon reported Q2 revenue of $200.61B, above the $196.47B LSEG estimate, and showed the fastest AWS growth since 2021. The cloud unit generated $42.2B of revenue, ahead of the $40.54B StreetAccount estimate, with year-over-year growth of 37% versus the 31% pace analysts expected.

The market reaction centered on the size of the cloud surprise and the implied demand for AI infrastructure. Amazon Web Services remains the segment investors use to measure Amazon's AI monetization because it carries large enterprise workloads, custom chips, model-hosting demand, and data-center commitments. A 37% growth rate resets the comparison against other hyperscalers after Microsoft had already reported strong Azure and Copilot figures in the same earnings window.

The second number was capital intensity. CEO Andy Jassy told investors that 2026 capital expenditures are now expected to reach $220B, up from the earlier $200B level. CNBC reported that management tied the increase partly to higher memory costs, while also saying available capacity remains below demand for 2026 and 2027. That matters for suppliers because memory, networking, servers, power equipment, and construction are all tied to hyperscaler spending plans.

For the broader market, the print separated Amazon from companies punished for weaker AI-linked guidance. Apple fell 7% after giving current-quarter revenue-growth guidance of 9%-11%, below the 12% LSEG estimate, while Amazon's AWS beat gave investors a concrete revenue line to attach to AI spending. The next check is whether the $220B capex plan converts into sustained AWS margin expansion rather than only higher depreciation and infrastructure cost.

Not investment advice. Verify all figures with primary sources before acting.