Amazon beats expectations on cloud and AI growth, stock jumps 7%
Amazon reported stronger-than-expected results for the second quarter, driven by growth in cloud computing, artificial intelligence and its custom chip business.
The e-commerce and tech giant said revenue rose 20% year-on-year to more than $200 billion. Its cloud unit, Amazon Web Services, was the standout performer, with sales climbing 37% to $42.2 billion.
Amazon has been making big bets on AI, including billions of dollars in investments and partnerships with both OpenAI and Anthropic. The company also highlighted demand for its AI infrastructure and in-house chips as key drivers in the quarter.
Investors responded quickly. Amazon stock jumped by more than 7 percent in after-hours trading following the earnings release.
The results beat analyst forecasts for both revenue and profit, underscoring how AWS and AI services are becoming central to Amazon’s growth even as its retail business continues to expand.
