Amazon’s $200 Billion Capex Jolt Divides Wall Street After Soft Guidance

Overview

• Amazon said capital spending will rise to $200 billion from roughly $130 billion in 2025, with most funds aimed at AWS and AI infrastructure.
• The forecast far exceeded Wall Street’s roughly $146.6 billion expectation cited by commentators.
• Bank of America reiterated a Buy on February 8, saying AWS AI capex returns will be the top driver for the stock and warning that the capacity ramp could add margin volatility even as it expects full utilization.
• DA Davidson downgraded the shares to Neutral on February 6 with a $175 target, arguing AWS is losing ground to faster-growing Azure and Google Cloud at 24% versus 39% and 48%, and suggesting Amazon may need a large OpenAI investment.
• Shares fell more than 5% after the quarter and weaker operating income guidance, with commentary noting the investment case now requires a degree of investor faith.