Amazon Crosses $3 Trillion Market Cap on Cloud, AI Rally — SkimNews
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- Amazon shares closed up 4% on Monday — the stock's best day since May 5 — pushing its market cap above $3 trillion for the first time following last week's Q2 earnings beat.
- Amazon posted Q2 adjusted EPS of $1.97 versus $1.82 estimates and revenue of $200.61 billion against a $196.47 billion consensus, with AWS revenue hitting $42.2 billion versus StreetAccount's $40.54 billion forecast.
- CEO Andy Jassy raised Amazon's 2026 capital expenditure projection to $220 billion, up from a $200 billion estimate in February, citing rising memory prices tied to the AI buildout and warning that even at that level, Amazon 'will still not have enough capacity to meet all the demand we have in 2026.'
- Jassy told investors that demand already booked for 2028 capacity is 'striking,' stretching AI infrastructure visibility well beyond the current planning year.
- Microsoft Azure cloud revenue rose 43% in its fiscal fourth quarter and Google Cloud reported 82% growth during the same earnings period, showing Amazon's rivals are riding the same AI-driven cloud demand wave.
Why it matters: Amazon's $3 trillion milestone, powered by AWS beating estimates by $1.66 billion, confirms AI-driven cloud demand is the engine behind mega-cap tech's biggest market-cap moves. With capex now pegged at $220 billion against demand already booked into 2028, the binding constraint is physical build-out capacity — not customer appetite.
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