Investors love AI, as long as you’re a cloud host
Amazon reported better-than-expected second-quarter earnings on Thursday, and investors loved what they saw. Net sales rose 20%, and cloud revenue stood out as a particular bright spot. This combination of positive results was enough to send Amazon’s stock up nearly 10% in after-hours trading.
Crucially, Amazon isn’t slowing down on data center spending, despite the conventional wisdom that investors want companies to rein it in.
One line item, in particular, illustrates Amazon’s appetite for investing in infrastructure. Amazon spent $173 billion for the fiscal year ended June 30 on property and equipment — a category that covers GPUs, natural gas turbines, and plots of land — up from $107.65 billion from the year before
It also raised its 2026 capex forecast from $200 billion to $220 billion — even as it has begun dipping into its cash reserves to help cover the cost. The company ended the quarter with $7.6...
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