Amazon Shares Jump 25% on AWS Graviton5 Deal, Anthropic $100B Pact
Amazon shares have surged 25% over 30 days after securing an AI infrastructure deal with Meta for AWS Graviton5 chips and a $100+ billion ten-year commitment from Anthropic. Strong chip-revenue run rate of $20 billion meets concerns over a 37 P/E ratio and $200 billion 2026 capex, yielding a hold rating.
1. Recent Stock Rally
Amazon shares have rallied over 25% in the past month, reflecting strong investor appetite for its AI initiatives and infrastructure growth prospects.
2. AI Infrastructure Wins
Amazon secured an AI infrastructure deal with Meta to deploy AWS Graviton5 chips and locked in a $100+ billion ten-year commitment from Anthropic, while its custom chip division reports an annual revenue run rate exceeding $20 billion.
3. Valuation and Capex Outlook
Despite robust AI-driven growth, Amazon’s trailing P/E ratio stands at 37 and management forecasts $200 billion in capital expenditures for 2026, raising questions about near-term returns and prompting analysts to recommend a hold.