Amazon AWS Grows 28% in Q1 as Cloud AI Capex Tops $700B, Chip Business Targets $50B
AMZN•Amazon Web Services grew 28% in Q1 2026, while cloud providers plan nearly $700B in AI infrastructure capital expenditure this year. Amazon’s custom Graviton and Trainium chips, generating a $20B AWS run rate, could reach $50B if sold externally after production capacity expands.
1. AWS Q1 Growth Performance
Amazon Web Services recorded 28% year-over-year revenue growth in the first quarter of 2026, trailing Google Cloud’s 63% and Microsoft Azure’s 40% gains but maintaining its leadership in global cloud market share.
2. Industry AI Infrastructure Investment
Major cloud service providers plan nearly $700 billion in capital expenditure on AI infrastructure by the end of 2026, driven by demand for data centers, high-powered processors, and networking components.
3. Graviton and Trainium Chip Opportunity
Amazon’s in-house Graviton and Trainium chips currently support a $20 billion annual AWS run rate, and Amazon aims to expand production capacity to sell these chips externally, potentially increasing revenue to $50 billion.
