Amazon's AI cloud business is accelerating even as the stock sits 11% below its August high. Q2 revenue grew 20% to $200.6 billion, AWS grew 37% to $42.2 billion, its fastest in 18 quarters, and the AWS backlog stands at $496 billion. The custom chip business now runs above $25 billion a year, with Anthropic and OpenAI both committed to Trainium. x.com 

Amazon's record AI spending looks backed by AWS demand, despite pressure on near-term profit. AWS grew 39% to $46bn, and CEO Andy Jassy projects growth above 40% in both 2027 and 2028. Quarterly capex reached $77.3bn, almost $20bn above expectations; the Q4 profit guide missed and retail ads softened. AWS acceleration makes the drop worth buying. Overweight; $370 target. x.com  x.com 

Amazon's AWS AI rents look limited because NVIDIA backs neoclouds and Anthropic can set AWS's cut of Bedrock Claude tokens. Those tokens run on AWS-funded Trainium. Enterprise AI earns ~2 points above capital cost in the 2035 base case; shared hyperscaler advantages and new rivals limit upside, though 1-5 points is plausible. Retail ads pose a fat-tail risk despite a base case that Amazon figures them out. Market skepticism about AWS capex has toned down the bearish view. x.com 

AWS's rapid growth in a huge business makes the long-term outlook decisively bullish for Amazon and the AI ecosystem. AWS revenue grew 39.3% year over year in September 2026; management guides for growth above 40% in 2027 and 2028. Amazon is always very conservative with guidance, making that AI outlook doubly bullish. x.com  x.com  x.com 

Fast peer-cloud growth makes a bullish Amazon earnings view hard to resist. Azure grew 48% and Google Cloud 103%; the forecast is for 42%+ AWS growth. AWS is expected to grow over 40% annually over the next two years, so selling Amazon here risks missing that growth. x.com  x.com 

Amazon is lining up $10 billion more for OpenAI, a company whose CFO Sarah Friar has voiced worry, per Bloomberg, that it may not be able to pay future compute contracts if revenue does not grow fast enough. OpenAI, valued at $852 billion with no actual profit, is a hole that eats Nvidia GPUs and investor cash, and AWS ends up funding a customer it competes against. This looks like a WeWork moment in data centers, not an iPhone moment. x.com 

Anthropic's customer growth gives AI compute suppliers firmer demand evidence than capacity plans. Its S-1 reports $16.3B in H1 2026 revenue and about 900% net retention as of September 30, the strongest evidence yet of adoption. Over $500B in commitments include a roughly $125B five-year Broadcom equipment lease plus Amazon, Google and Microsoft arrangements; Nvidia GPUs are in its mix. Long-term obligations could outlast usage revenue. x.com 

Amazon is a name where every pullback is an accumulation opportunity, and most investors are underweight. AWS grew 28% and is re-accelerating as enterprise AI moves to production, and Graviton chips run 98% of the top 1,000 AWS customers at 40% better price-performance than x86. $200B of 2026 capex repeats the original AWS playbook, trading near-term free cash flow for a capacity moat. A $60B+ ad business, the second-largest US grocer and Bedrock as an AI agent platform add more. x.com 

Amazon's AWS growth remains strong despite slight earnings misses. AWS revenue rose 39% year over year in Q3. Increased 2027 capex could still weigh on the shares in the short term, even if demand continues to rise. x.com  x.com  x.com  x.com 

Amazon's AWS acceleration is beginning to support the case for its heavy AI investment cycle. Q3 AWS revenue grew 39.3% to $46B and operating income rose 55% to $17.8B; company operating margin hit a record 13.9%. Andy Jassy says Prime Video generates tens of billions in annualized revenue and is independently profitable. The EPS miss, slower 11% ad growth and roughly $220B of 2026 capex remain worth watching, but the long-term view stays extremely bullish. x.com