Amazon CEO Projects AWS Revenue Growth of 40% Through 2028 Amid High AI Infrastructure Spending
Amazon (AMZN) CEO Andy Jassy has projected that Amazon Web Services (AWS) could achieve revenue growth exceeding 40% in both 2027 and 2028, with the potential to become a trillion-dollar business within the next decade. This optimism is driven by surging demand for generative AI services, including compute capacity, custom chips, and AI model access. AWS recently reported its highest year-over-year revenue growth in nearly five years at 39.3%, contributing approximately 64% of Amazon's total operating profit. Despite these strong fundamentals, Wall Street remains cautious due to the massive capital expenditures required to sustain this momentum. Amazon is guiding for $220 billion in CapEx this year and expects even higher spending in 2027 to build out AI infrastructure. This heavy investment has contributed to a negative free cash flow of $42.4 billion over the last 12 months, creating a tension between long-term growth potential and immediate fiscal concerns.
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Topics: AI infrastructure spending Amazon earnings analysis AWS revenue growth Hyperscaler capital expenditure