Amazon Faces Valuation Split as AWS Grows 24% and $200B Capex Raises Concerns
Bears flag slowing e-commerce growth, 24% AWS growth lagging competitors, and $200B capex-driven debt, while bulls cite AI-driven operating leverage and $50B custom-chip investments. Amazon also invested $500M in X-energy’s Series C-1 and committed to 5GW of modular nuclear power by 2039.
1. Valuation Debate
Market commentators are split on Amazon’s near-term outlook. Bears warn that slowing e-commerce revenue growth and AWS trailing key competitors, combined with $200 billion in capex commitments, could elevate debt levels. Bulls counter that AWS revenue jumped 24% last quarter, AI-driven automation is boosting operating margins, and $50 billion in custom-chip investment will secure long-term efficiency.
2. Nuclear Investment with X-energy
Amazon backed X-energy’s Series C-1 with a $500 million investment ahead of the startup’s potential $800 million IPO. The company has committed to purchasing up to 5 gigawatts of small modular nuclear reactor capacity by 2039 to power its expanding data centers and AI infrastructure, marking a strategic move into clean nuclear energy.