Amazon's $100B Anthropic Deal Propels 25% Rally; Chips Hit $20B
Amazon's shares have surged over 25% after securing a $100 billion Anthropic AWS commitment and a Meta Graviton5 chip contract, reflecting strong AI infrastructure demand. The stock trades at a 37x P/E, its custom chip unit reached a $20 billion run rate, and Q1 earnings arrive April 29.
1. AI Infrastructure Deals Boost AWS Demand
Amazon secured a 10-year, $100 billion Anthropic AWS commitment and won a Graviton5 chip contract with Meta, underlining surging corporate demand for its AI cloud services.
2. Custom Chip Business Reaches $20 Billion Run Rate
Amazon’s custom silicon division has recorded triple-digit year-over-year growth, surpassing a $20 billion annual run rate as enterprises adopt in-house chips for performance and cost efficiencies.
3. Valuation and Capital Expenditure Outlook
Trading at a 37x forward P/E, Amazon faces valuation scrutiny despite growth; the company plans roughly $200 billion in capital expenditures for 2026 to expand cloud, data center and logistics infrastructure.
4. Q1 Earnings Set for April 29
Amazon will report first-quarter results on April 29 alongside other major tech peers; investors will focus on AWS revenue trajectory, margin trends and guidance on expense growth.