Amazon AWS AI revenue hits $15B run rate as chip unit doubles to $20B
Barclays expects Amazon to outperform mega-cap tech, citing AWS’s AI services achieving a $15 billion annualized run rate and plans to deploy over 1 million Nvidia GPUs in 2026–27. Amazon’s custom chips business doubled to a $20 billion run rate in three months, while its grocery segment topped $150 billion in U.S. sales.
1. Barclays Bullish on AWS AI
Barclays highlighted AWS’s AI services achieving a $15 billion annualized run rate in Q1 2026, asserting that these metrics provide additional confidence in long-term upside from AI-driven cloud demand.
2. Massive GPU Deployment Planned
The firm pointed to AWS’s plan to add more than 1 million Nvidia GPUs across 2026 and 2027, a scale of infrastructure expansion that could theoretically translate into roughly $100 billion in annual AWS revenue when fully deployed.
3. Custom Chip Business Expansion
Amazon disclosed that its custom chip division reached a $20 billion revenue run rate after doubling in just three months, with Barclays estimating an external sales opportunity of around $50 billion if the chips were sold beyond internal use.
4. Grocery Segment Milestone
Amazon’s grocery business surpassed $150 billion in U.S. gross sales in 2025, securing its position as the second-largest grocer nationwide and underscoring the division’s rapid scale and improving margins.