Amazon Desires to Spend More Than $220 Billion in AI Capex This Year. That’s Why I’m Buying

I support buying Amazon (NASDAQ:AMZN), and the July 30, 2026 net study gave maine different crushed to support the bargain fastener warm. When a institution astatine a $2.921 trillion marketplace headdress accelerates its unreality concern to its fastest gait successful 18 quarters portion committing to what looks similar much than $220 cardinal successful superior spending this year, I work that arsenic a request occupation I privation to own.

The thesis successful plain English: Amazon is gathering AI capableness to fulfill contracts customers person already signed. Anthropic committed up to 5 GW of Trainium spot capacity, OpenAI committed astir 2 GW of Trainium capableness opening 2027, and Amazon Bedrock customers spent much successful Q2 than each anterior quarters combined. AWS carries a $496B contracted backlog, which is the receipt for the spending.

Three Reasons the Conviction Holds

First, AWS growth. Segment gross reached $42.23 cardinal successful Q2 2026, up 37% twelvemonth implicit year, astatine a 39.4% operating margin. Andy Jassy told investors that Amazon's "AI and Chips businesses each eclipsed tally rates of much than $25 billion." That is simply a booked tally complaint compounding astatine triple-digit percentages.

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Second, the net powerfulness backing the buildout. Q2 operating income roseate 43.24% to $27.461 billion. EPS came successful astatine $5.75 against a $1.8227 estimate, a 215.47% beat. Full-year 2025 operating currency travel reached $139.514 billion. The equilibrium expanse absorbs the strain: nett indebtedness to EBITDA of 0.45, involvement sum of 35.17x, and shareholders' equity astatine $551.62 billion.

Third, the capex trajectory. H1 2026 capex deed $98.411 billion. Q2 unsocial was $54.208 billion, up 68.44% twelvemonth implicit year. Polymarket traders delegate a 62.5% probability that 2026 capex clears $220 billion. A hyperscaler outrunning its ain capex usher due to the fact that customers support asking for much is the awesome I privation to see.