Amazon reported blowout second-quarter results with AWS revenue growth of 37% year-over-year, surpassing analyst expectations of around 31%. The company’s shares surged over 15% following the report, pushing the S&P 500 and Nasdaq up approximately 9% year-to-date. Amazon also raised its full-year capital expenditure guidance to $220 billion, with nearly all incremental spending earmarked for AI infrastructure. These results confirmed a trend seen earlier in the week with Microsoft, suggesting major cloud platforms are beginning to monetize AI at scale. The decentralized AI and compute sector could face tightening conditions due to GPU scarcity driven by hyperscaler demand.
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