Amazon spent $173 billion on property and equipment for the fiscal year ending June 30, a sharp increase from $107.65 billion the previous year. This capital expenditure covers everything from land acquisition to natural gas turbines and specialized GPUs. Even as the company dips into its cash reserves—ending the quarter with $7.6 billion less than a year ago—leadership has raised its 2026 capex forecast to $220 billion.
Amazon’s Cloud Bet Defies Investor Caution on AI Spending
Investors pushed Amazon stock up nearly 10% following a second-quarter report that showcased a 37% revenue jump in AWS. While the company is aggressively pouring billions into data centers and proprietary hardware, the market is signaling a clear preference for cloud giants over less focused AI ventures.
This appetite for infrastructure spending is currently being rewarded by Wall Street, provided the company can link costs to cloud growth. Unlike competitors like Meta, which faced an 8% stock drop amid skepticism over its spending, Amazon is successfully framing its infrastructure as a necessity for the booming AI economy. CEO Andy Jassy remains confident in this strategy, betting that AWS and the Bedrock platform can thrive by hosting a variety of models rather than relying on a single dominant technology. Ultimately, the sustainability of this model rests on the $3 trillion question of whether long-term enterprise demand will justify the current, record-breaking buildout of capacity.
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