Amazon Shares Jump 25% on $100B Anthropic AWS Deal but Valuation Worries Persist
Amazon shares have climbed 25% in the past month on AI infrastructure wins, including a $100 billion Anthropic AWS deal and a $20 billion custom chip revenue run rate. However, a 37x P/E ratio and planned $200 billion capital expenditures for 2026 prompt analysts to rate the stock a hold.
1. AI Infrastructure Wins Driving Share Gains
Amazon secured a $100 billion commitment from Anthropic to deploy AWS infrastructure, boosting investor confidence and contributing to a 25% share price increase over the past month.
2. Custom Chip Revenue Hits $20B Run Rate
The company's custom chip unit, including AWS Graviton5, reached a revenue run rate of $20 billion, reflecting triple-digit annual growth and strengthened Amazon's position in cloud AI services.
3. Valuation Pressure from High P/E and Capex
Despite robust top-line momentum, a 37x price-to-earnings ratio and a planned $200 billion capital expenditure program for 2026 have raised questions about future profitability and prompted analysts to maintain a hold rating.