Amazon Stock Rises 25% on AWS Graviton5 Deal and $100B Anthropic Pact
Amazon shares have climbed over 25% in the past month after securing a deal with Meta for AWS Graviton5 chips and a $100 billion Anthropic commitment. Chip unit grows triple digits to a $20 billion run rate, but a P/E of 37 and $200 billion 2026 capex plan pressure valuations.
1. Share Surge Fueled by AI Deals
Amazon shares jumped over 25% in the last month after securing a multi-state AWS Graviton5 chip agreement with Meta and a $100 billion, 10-year cloud deal with Anthropic, highlighting investor enthusiasm for its AI infrastructure offerings.
2. Rapid Expansion of Custom Chip Business
The in-house chip division is reporting triple-digit revenue growth, reaching a $20 billion annual run rate, as enterprises increasingly adopt AWS’s proprietary silicon for AI and data-processing workloads.
3. Valuation and Spending Outlook
Despite strong growth, the stock trades at a P/E of 37, and Amazon plans approximately $200 billion in capital expenditures in 2026, raising investor concerns about future profitability and free-cash-flow generation.