Amazon Shares Up 25% on Meta AWS Deal and $100B Anthropic Pact
Amazon shares jumped 25% over the past 30 days after securing a Meta AWS Graviton5 chip deployment and securing a $100+ billion, 10-year Anthropic AWS commitment. Its custom chip unit now runs at a $20 billion annual revenue pace with triple-digit growth, though a P/E of 37 and $200 billion 2026 capex raise valuation concerns.
1. Stock Performance and AI Deals
Amazon’s share price climbed roughly 25% over the past month following key AI infrastructure agreements, including deployment of AWS Graviton5 chips for Meta and a landmark $100+ billion, decade-long commitment from Anthropic to use Amazon Web Services.
2. Custom Chip Business Expansion
The company’s in-house chip division has achieved a $20 billion annual revenue run rate, driven by triple-digit year-over-year growth as enterprises ramp up AI workloads and seek energy-efficient, high-performance compute solutions.
3. Valuation and Capex Outlook
Despite strong fundamental momentum, Amazon trades at a P/E ratio of 37 and plans approximately $200 billion in capital expenditures for 2026, prompting analysts to question whether future earnings can justify the aggressive spending and lofty valuation.