Amazon has increased its 2026 capital expenditure forecast to $220 billion, up from $200 billion, primarily due to higher memory and component costs and investments in AI and cloud infrastructure. This revision was disclosed alongside the company’s second-quarter results, showcasing the growing significance of artificial intelligence in Amazon’s growth strategy.
AWS revenues surged by 36.7% year-over-year in the second quarter, reaching $42.2 billion—the fastest growth in 18 quarters—with an annualized run rate of $169 billion. The unit’s backlog of customer commitments increased to $496 billion, more than doubling from the previous year. Overall, Amazon’s net sales rose 20% to $200.6 billion, with an operating income of $27.5 billion; the company projects third-quarter net sales between $197 billion and $202 billion.
In contrast, Amazon’s capex plan positions it ahead of competitors like Microsoft, which has guided for $190 billion in expenditure, and Alphabet, ranging from $195 to $205 billion for the same period. The increasing spending across the industry indicates a broader trend in cloud spending among major tech firms.
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