Amazon Exceeds Q2 Earnings Expectations with Strong AI and Chip Business Growth
Amazon reported second-quarter earnings that exceeded expectations, driven by strong performance in its AWS cloud computing division as well as its artificial intelligence (AI) and chip businesses. Both the AI and chips segments surpassed an annualized revenue run rate of $25 billion for the first time. The company's stock rose over 9% following the announcement. AWS saw year-over-year growth of 36.7%, with sales reaching $42.2 billion in Q2, surpassing expectations of $40.5 billion. Amazon also reported record delivery speeds and strong performance from its advertising business, which grew by 26%. However, free cash flow declined sharply to -$7.6 billion due to heavy investments in AI infrastructure. The results come amid a broader trend among tech giants investing heavily in AI capabilities. Microsoft recently posted robust earnings as well, while Meta's stock fell after missing guidance and not providing capex forecasts for 2027.
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Topics: AI Amazon AWS Earnings Beat Stock Movement