3 weeks ago
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Anthony Di Pizio, The Motley Fool
Wed, August 5, 2026 astatine 4:50 AM CDT 5 min read
Amazon (NASDAQ: AMZN) banal returned thing during the archetypal 7 months of 2026. But it has risen by 25% to a caller grounds precocious since July 30, erstwhile the institution reported its second-quarter operating results.
Amazon had a large 4th crossed the board, with its e-commerce, unreality computing, and integer advertizing businesses producing accelerating gross growth. But portion discussing these results during his league telephone with investors, Chief Executive Officer Andy Jassy made 1 peculiar remark astir the company's unreality concern that whipped Wall Street into a frenzy.
Missed Nvidia successful 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" awesome flashed for a little-known chipmaker called Nvidia. For the archetypal clip successful years, that aforesaid "Total Conviction" awesome is flashing for a institution 1/100th the size of Nvidia. Continue »
Here's what helium said and wherefore it could spark a sustained rally successful Amazon stock.
Amazon Web Services could go a trillion-dollar concern
Amazon Web Services (AWS) is Amazon's industry-leading unreality computing platform. It offers hundreds of services to assistance businesses thrive successful the integer age, but its expanding portfolio of artificial quality (AI) tools is the main operator of the caller acceleration successful its gross growth.
AWS operates information centers worldwide that location thousands of chips and components specifically designed to process AI workloads. Many of these chips travel from suppliers similar Nvidia, but Amazon besides designed its own, including Trainium2, which delivers up to 30% amended price-performance than the competition. Trainium3, which precocious started shipping, improves terms show by another 30% to 40%.
Every AI developer wants the fastest processing speeds astatine the lowest price, which is wherefore Amazon's spot concern present has $25 cardinal successful annualized revenue. But developers besides privation entree to a room of ready-made models from starring labs similar Anthropic to accelerate their AI bundle projects, and AWS Bedrock offers much than 100 of them.
To further velocity up development, programmers are leaning connected AI coding assistants similar Anthropic's Claude Code. But AWS present offers its ain alternative, Kiro, which is 50% much cost-effective than the competition, truthful usage unsurprisingly tripled sequentially during the 2nd quarter.
All of this led to $42.2 cardinal successful AWS gross during the 2nd quarter, a 37% summation from the aforesaid 4th past year. That maturation complaint accelerated for the 4th consecutive period, highlighting the platform's unthinkable momentum.
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