AWS-Meta Chip Deal and $100B Anthropic Pact Propel Amazon Shares 25%
Amazon shares have rallied over 25%, powered by an AWS deal with Meta for Graviton5 chips and a $100+ billion Anthropic commitment. Its custom chip unit now runs at a $20 billion revenue rate, but a 37 P/E ratio and $200 billion 2026 capex forecast raise valuation concerns.
1. Share Surge and Catalysts
Amazon shares have jumped more than 25% in recent weeks as investors cheer its AI infrastructure wins. The rally follows AWS securing a Graviton5 chip supply deal with Meta and a $100+ billion, decade-long pact with Anthropic.
2. Custom Chip Business Growth
The custom silicon division has achieved triple-digit growth and now runs at an annual $20 billion revenue rate. This performance underscores Amazon’s push to capture more of the lucrative AI workload market.
3. Valuation and Capex Outlook
Despite strong fundamentals, Amazon trades at a 37 P/E ratio, prompting valuation scrutiny. Management’s plan for $200 billion in 2026 capital expenditures further fuels debate over the stock’s near-term upside and long-term returns.