Amazon’s AWS Grows 28% with $364B Backlog, Stock Up 30%
Amazon’s AWS segment delivered 28% year-over-year revenue growth, the fastest pace in 15 quarters, driven by AI infrastructure demand and backed by a $364 billion backlog. The stock has surged over 30% since late March on accelerating cloud growth and expanding Graviton and Trainium chip initiatives.
1. AWS Q1 Performance
Amazon’s AWS unit grew 28% year-over-year, the fastest in 15 quarters, driven by surging AI infrastructure demand and supported by a $364 billion services backlog that secures revenue visibility over multiple years.
2. Q2 Guidance
Management projects Q2 revenue between $194 billion and $199 billion alongside operating income of $20 billion to $24 billion, signaling confidence in sustained cloud growth despite elevated capital expenditures.
3. AI Chip Strategy
Amazon’s custom Graviton and Trainium processors underpin its AI cloud expansion and could evolve into a standalone chip business, positioning the company to challenge Nvidia and AMD in high-performance computing.
4. Stock Reaction and Valuation
Shares have climbed over 30% since late March on accelerating AI-driven cloud momentum, trading at roughly 30x forward earnings, with some analysts forecasting a $375 per share target.