Amazon Stock Jumps 25% on Anthropic $100B Pact, $20B Chip Sales Ahead of April 29 Earnings
Amazon shares have jumped over 25% on AI-infrastructure wins, including an Anthropic $100 billion pledge and an AWS Graviton5 deal with Meta alongside $20 billion in chip revenue. It reports Q1 results on April 29 alongside Alphabet, Meta and Microsoft as part of a record $650 billion tech capex surge.
1. AI Infrastructure Wins Drive 25% Share Rise
Amazon shares surged 25% recently as investors reacted to major AI-infrastructure commitments, notably a $100 billion multi-year pledge from Anthropic and the adoption of AWS Graviton5 processors by Meta, underscoring strong demand for cloud-based AI services.
2. Robust Chip Business Growth
The company’s custom chip segment has reached a revenue run rate exceeding $20 billion, reflecting triple-digit growth that complements AWS’s core offerings and supports higher margins as Amazon expands its hardware ecosystem.
3. Q1 Earnings in Mega Capex Context
Amazon will report first-quarter results on April 29 alongside Alphabet, Meta and Microsoft, in the shadow of a collective $650 billion capital expenditure plan for 2026, including Amazon’s own $200 billion investment outlook, which will shape guidance.
4. Fed Chair Powell’s Final Meeting
The earnings day coincides with Federal Reserve Chair Jerome Powell’s final policy meeting, where decisions on interest rates could influence market sentiment and the valuation of high-growth technology stocks like Amazon.