Amazon’s Capital Expenditure Highlights
Amazon’s capital expenditures reached a record $125 billion in 2025, the highest in the company’s history. This significant investment is aimed primarily at enhancing its Amazon Web Services (AWS) division and developing custom AI technology and data center capacity.
Despite this spending, Amazon’s stock performance lagged, with only a 5% increase for the year, compared to stronger gains from competitors like Nvidia and Microsoft. Investors expressed impatience over the delay in tangible returns on these investments.
AWS experienced a 20% revenue growth in Q3 2025, buoyed by a notable $38 billion deal with OpenAI to provide cloud computing services for its AI developments. The expansion in capacity is expected to better position AWS for future revenue growth.
