Amazon’s AI Spending Shock Sends Ripples Through Tech Sector
Amazon shares plummeted 11% in after-hours trading following a double whammy of missed Q4 earnings and a staggering $200 billion capital expenditure forecast for 2026. The tech giant's planned investment dwarfs both analyst expectations and competitors' budgets, signaling an aggressive AI infrastructure arms race.
While AWS revenue grew at its fastest pace in 13 quarters, investors balked at the scale of proposed spending. CEO Andy Jassy's justification of 'very high demand' for AI compute failed to calm markets, as tech stocks continue facing pressure from ballooning infrastructure budgets across the sector.