Amazon Stock Surges 20% in Two Days, Market Cap Tops $3T on AI Demand

AWS revenue jumps 37% to $42.2B with backlog hitting $496B. Capital spending rises to $220B for 2026 as AI infrastructure demand outpaces supply through 2028.

Woofun AI reports that Amazon shares climbed more than 20% over two sessions, pushing market capitalization past $3 trillion for the first time. Second-quarter revenue reached $200.6 billion, a 20% year-over-year increase, while AWS revenue hit $42.2 billion, up 37% annually—the fastest growth rate in nearly 18 quarters. The AWS backlog expanded to $496 billion from $364 billion in the prior quarter.

CEO Andy Jassy stated that AI and custom chip businesses have each surpassed $25 billion in annualized revenue. Compute resources are projected to remain insufficient through 2028, prompting a raise in 2026 capital expenditure guidance from $200 billion to $220 billion. Free cash flow for the trailing twelve months stood at -$7.6 billion, attributed to timing differences between investment and revenue recognition.