Amazon to Boost AWS Capex Over 50% to $200B, Bank of America Upholds Buy
Bank of America reiterated an Amazon Buy rating on February 8, projecting that returns on AWS AI capital expenditures will be the primary stock driver for several years. Amazon’s total capex is set to rise over 50% from $130 billion in 2025 to $200 billion, significantly above analyst estimates of $150 billion.
1. Bank of America Buy Rating
On February 8, Bank of America reaffirmed a Buy rating on Amazon, highlighting that returns from AWS AI capital expenditures will drive the stock’s performance over the coming years. The firm’s review of Amazon’s financial filings forecast that AI-driven infrastructure investments will position AWS to capitalize on industry-wide digital transformation.
2. AWS Capex Growth Plans
Amazon’s total capital expenditures are slated to jump from approximately $130 billion in 2025 to $200 billion, an increase exceeding 50%, with the majority allocated to AWS infrastructure. This outpaces analyst projections near $150 billion and reflects a strategic emphasis on scaling AI compute capacity.
3. Return Expectations and Margin Volatility
Bank of America expects robust returns on AWS AI capex to be the primary catalyst for Amazon’s share appreciation, despite potential quarterly margin swings from the capacity ramp-up. The firm anticipates full utilization of the expanded capacity as enterprises integrate AI solutions, supporting AWS’s competitive edge.