Amazon’s AI-Driven Growth Through AWS Positions It for Continued Stock Market Success
Amazon shares have surged 714% over the past decade, with a recent 10% dip from peak prices offering a potential entry point for investors. The company's e-commerce dominance is well-known, but its cloud computing division, Amazon Web Services (AWS), is now stealing the spotlight.
AWS places Amazon at the forefront of the AI boom, providing essential tools for companies developing AI applications. CFO Brian Olsavsky highlighted a planned $60 billion capital expenditure in the second half of 2025, emphasizing AWS as the primary driver to meet AI service demand.
The financial impact is already evident. AWS reported 17% year-over-year growth in Q2 2025, bolstered by its high operating margins. This segment's profitability and scalability underscore Amazon's strategic advantage in the tech sector.