Amazon Plans $200 B Capex for 2026 as AWS Grows 24%
Amazon shares have declined 13% year-to-date despite strong fourth-quarter results and AWS revenue growing 24% year-over-year. The $200 billion capital expenditure program planned for 2026 and emerging AI chip initiatives have raised investor concerns but underscore Amazon’s long-term growth strategy.
1. Fourth-Quarter Performance
Amazon reported strong fourth-quarter revenue growth, with AWS revenue rising 24% year-over-year and solid retail segment gains despite a 13% year-to-date share price decline.
2. 2026 Capital Expenditure Plan
The company unveiled a $200 billion capital expenditure program for 2026 aimed at expanding fulfillment centers, cloud infrastructure and logistics capacity, prompting investor caution over near-term cash flow impact.
3. AI Chip Development Initiative
Amazon is accelerating its AI chip development, leveraging internal designs for cloud and edge applications to reduce reliance on third-party processors and capture emerging AI markets, though commercialization remains nascent.