Amazon Shares Rally 25% on AI Wins Despite $200B 2026 Capex Plan
Amazon shares surged 25% in the past month driven by AI infrastructure wins including a $100B ten-year Anthropic commitment and AWS Graviton5 chip deal with Meta, while Amazon's custom chip revenue run rate tops $20B. The stock trades at a P/E of 37 as management plans $200B in capital expenditures for 2026, prompting some analysts to maintain a 'hold' rating.
1. AI Infrastructure Deals Boost Revenue
Amazon secured a ten-year, $100 billion commitment from Anthropic and expanded its AWS Graviton5 chip deployment with Meta, while its in-house chip division achieved a run rate exceeding $20 billion in annual revenue.
2. Stock Performance Surges
Shares climbed over 25% in the past month, reflecting investor enthusiasm for Amazon's AI infrastructure leadership and long-term growth potential in cloud and custom silicon.
3. Valuation and Capex Outlook
Management outlined plans for $200 billion in capital expenditures for 2026 as the stock trades at a P/E ratio of 37, leading analysts to issue 'hold' recommendations citing valuation concerns.