Amazon Shares Soar 11% as Cloud Business Hits Fastest Growth Since 2022
Amazon Web Services posts 20% year-on-year revenue rise, boosting investor confidence in AI infrastructure ambitions
Amazon.com Inc. shares climbed about eleven per cent after the company announced that its cloud-computing unit, Amazon Web Services (AWS), achieved its strongest growth in nearly three years.
For the third quarter, AWS reported revenue of thirty-three billion dollars, up twenty per cent from the prior year and ahead of analyst estimates.
Total revenue for Amazon reached approximately one hundred eighty point two billion dollars, a thirteen per cent increase year-on-year, while net income surged by nearly forty per cent to twenty-one point two billion dollars.
Chief Executive Officer Andy Jassy attributed the gains to a wave of demand for artificial-intelligence (AI) infrastructure and core cloud services that now underpin both enterprise and consumer applications.
Amazon disclosed capital spending of thirty-four point two billion dollars in the quarter, with year-to-date investment reaching eighty-nine point nine billion dollars, directed substantially at data centres and proprietary AI-chips.
The company said it added more than 3.8 gigawatts of compute power over the past twelve months and reaffirmed its long-term ambition to lead in cloud-based AI services.
While AWS’ growth rate remains lower than some rivals, including Microsoft’s Azure and Google Cloud, investors interpreted the results as a sign that Amazon is reinvigorated in the cloud race.
The strong showing helped calm concerns that the company was lagging in the generative-AI transition.
Amazon forecast fourth-quarter revenue in a range of two hundred six billion to two hundred thirteen billion dollars, suggesting continued momentum.
The surge in the stock price reflects renewed investor confidence in Amazon’s strategic positioning at the intersection of e-commerce, advertising and cloud infrastructure.
As AI continues to reshape the technology landscape, Amazon’s turn to capital-intensive cloud investment appears to be paying early dividends.