25% Surge Driven by AWS Graviton5 Deal and $100B Anthropic Pact
Amazon shares have surged over 25% in the past 30 days, driven by AI infrastructure wins including a Meta deal for AWS Graviton5 chips and a $100 billion Anthropic commitment over ten years. The custom chip business is growing at triple-digit rates with a $20 billion annual revenue run rate, but a P/E ratio of 37 and $200 billion capital expenditure plan for 2026 have prompted analysts to maintain a hold rating.
1. Recent Share Performance
Amazon shares climbed over 25% in the last 30 days, marking one of the strongest monthly advances in its history and reflecting renewed investor enthusiasm around AI initiatives.
2. AI Infrastructure Wins
The company secured a major deal with Meta to deploy AWS Graviton5 chips and locked in a more than $100 billion, ten-year commitment from Anthropic, reinforcing AWS’s leadership in supplying AI infrastructure.
3. Custom Chip Business Expansion
Amazon’s in-house chip division has reached a $20 billion annual revenue run rate, fueled by triple-digit growth as enterprises seek alternatives to mainstream processors.
4. Valuation and Capital Plans
Despite robust growth, a forward P/E of 37 and a planned $200 billion in capital expenditures for 2026 have led analysts to retain a hold rating, citing potential margin pressure and cash-flow impact.