Overview
- Amazon outlined about $200 billion in 2026 capital spending, up from roughly $130 billion in 2025, with most funds directed to AWS and AI infrastructure.
- Shares fell about 5.6% intraday on Feb. 6 following the capex disclosure, as commentary highlighted softer operating income guidance contributing to the pullback.
- Analyst views split: DA Davidson cut the stock to Neutral with a $175 target, Bank of America kept a Buy citing expected AWS capex returns, and Dan Ives lowered his target to $300.
- AWS revenue growth remains near 24%, and Amazon says its Trainium and Graviton chips now generate more than $10 billion annually with triple-digit growth rates.
- Reuters reported Amazon is in talks to invest up to $50 billion in OpenAI, a developing possibility that could reshape expectations for its AI strategy.