Amazon Earnings Surge on AWS and AI Growth, Lifting Tech Sentiment

Amazon shares soared 13% post-market as the tech giant delivered a decisive earnings beat, with cloud computing and artificial intelligence driving momentum. Third-quarter EPS reached $1.95 against $1.57 expectations, while revenue hit $180.2 billion—surpassing Wall Street's $177.8 billion forecast.

AWS revenue growth accelerated to 20.2% year-over-year, marking its strongest performance since 2022. The cloud division's $33 billion haul exceeded projections, fueled by enterprise demand for AI infrastructure and Core services. CEO Andy Jassy highlighted the addition of 3.8 gigawatts of new capacity and the launch of the $11 billion Project Rainier data center, purpose-built for Anthropic's AI models.

The company raised its capital expenditure forecast to $125 billion for 2025, signaling aggressive investment in AI infrastructure. This expansion comes alongside ongoing workforce optimization, with layoffs continuing as Amazon reallocates resources toward high-growth sectors.