Key Points
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In Q2 2026, Amazon Web Services experienced its fastest growth in over four years, contributing to a total revenue exceeding $200 billion, up nearly 20% year-over-year.
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Microsoft generated $19.6 billion in free cash flow for the fourth quarter of fiscal 2026 and projected its Azure revenue to exceed $100 billion for the first time.
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Ken Griffin’s Citadel sold 6.8 million shares of Nvidia, reducing its stake by 36%, while simultaneously adding 2.8 million shares of Amazon and 1.1 million shares of Microsoft.
Amazon’s Q2 revenues topped $200 billion with AWS contributing $16.6 billion in operating income, a significant increase from the previous year. The company’s AI segment reached an annual run rate of $25 billion, buoyed by investments in custom-built AI chips.
Microsoft reported $90 billion in total revenue, up 18% year-over-year, with Azure having its first year surpassing $100 billion in revenue. Despite significant investment commitments for AI infrastructure, it successfully maintained positive cash flow.
Citadel’s recent portfolio changes demonstrate a strategic pivot in AI investment. While reducing exposure to Nvidia, Broadcom, and Micron, the firm increased its stakes in Amazon and Microsoft, reflecting a positive sentiment towards these companies in the AI sector.
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