Amazon Surges 25% on $100B Anthropic Deal and Plans $200B 2026 Capex
Amazon shares have surged over 25% in the past 30 days after securing a $100 billion, 10-year commitment from Anthropic and a Graviton5 deployment deal with Meta, boosting AWS chip revenue to a $20 billion annual run rate. The company plans $200 billion in 2026 capital expenditures and reports Q1 results on April 29 alongside major peers, trading at a P/E of 37.
1. AI Infrastructure Wins
Amazon secured a $100 billion, 10-year commitment from AI startup Anthropic and inked a deployment deal for AWS Graviton5 chips with Meta, strengthening its position in high-margin cloud services. These wins have accelerated Amazon’s custom chip business to a $20 billion annual revenue run rate, driving recent share gains.
2. Capital Expenditure Plan
The company outlined a $200 billion capital expenditure budget for 2026, more than 50% higher than last year, to expand data centers, support AI infrastructure, and fund logistics network upgrades. This aggressive spend underscores confidence in long-term demand but raises questions about near-term free cash flow.
3. Stock Performance and Valuation
Amazon stock has climbed over 25% in 30 days, reflecting investor optimism around AI partnerships and capex commitments. However, trading at a P/E ratio of 37 and carrying elevated capital outlays has prompted some analysts to assign a cautious rating.
4. Upcoming Q1 Earnings
Amazon will report first-quarter results on April 29, joining Alphabet, Meta and Microsoft in a rare synchronized earnings day. Investors will focus on revenue growth, AWS operating margins and guidance to gauge whether recent investments translate into sustainable profit expansion.