Amazon AWS Growth Accelerates Amid Heavy AI Infrastructure Spending
Amazon (AMZN) reported strong third-quarter results highlighted by a significant acceleration in its Amazon Web Services (AWS) division. AWS revenue grew 39% year-over-year to $46 billion, with operating income rising to $17.8 billion. This growth suggests that increasing demand for cloud computing and AI workloads is translating into tangible top-line results for the company's primary profit engine. Despite these gains, Amazon's stock faced pressure due to a sharp decline in free cash flow, which turned negative at $42.4 billion over the last 12 months compared to a positive $14.8 billion the previous year. This shift is driven by massive capital expenditures—projected to reach approximately $220 billion in 2026—as the company aggressively invests in data centers, servers, and networking equipment to support artificial intelligence infrastructure.
Tickers: $AMZN
Topics: AI infrastructure spending AWS revenue growth Free cash flow Operating margin