Amazon’s cloud computing arm, AWS, now carries an order backlog of approximately $200 billion, reflecting strong enterprise demand for AI infrastructure. In its most recent quarter, AWS revenue grew 20.2 percent year-over-year, driven by capacity additions exceeding one gigawatt and large-scale AI partnerships. Notably, the company committed $38 billion to OpenAI over multiple years, underscoring its strategy to monetize generative AI workloads and convert backlog into near-term revenue.

Following a reduction of roughly 10 percent of its corporate workforce, Amazon has shifted toward AI-powered automation across customer service and fulfillment. Analysts project that these measures, when combined with broader cost-cutting initiatives, could serve as margin tailwinds through 2026. This trend echoes across Big Tech, where labor market softness—potentially exacerbated by AI adoption—may ease operating expenses and support incremental profit expansion in the second half of the year.

In the third quarter, Argus Investors Counsel reduced its position in Amazon by 20.4 percent—selling 3,236 shares to hold 12,628 shares, which ranked the stock as its 16th largest weighting valued at $2.77 million. Conversely, Avantra Family Wealth boosted its stake by 36.1 percent, acquiring 4,680 additional shares to reach 17,659 shares worth $3.88 million. Overall, institutions still control 72.2 percent of outstanding shares, signaling continued confidence among large investors despite selective portfolio adjustments.