Amazon Accelerates Massive AI Cloud Buildout After Strong Q2

The company is betting heavy GPU and data‑center spending will convert its large contracted cloud demand into higher revenue and margins in 2027–2028.

Overview

Amazon, which reported Q2 results on July 30, posted EPS of $5.75 and revenue of $200.61 billion as AWS revenue accelerated 37% to $42.2 billion.
Management disclosed plans to add about 2 million high‑end Nvidia GPUs across 2027–2028, bringing its announced chip commitments to roughly 3 million units.
The push for data centers and chips has driven capital spending sharply higher and pushed trailing 12‑month free cash flow to negative $7.6 billion despite strong operating cash flow.
Investors and analysts reacted positively with shares up roughly 3–4% after Evercore raised its price target to $355 and cited survey data showing 92% U.S. shopper penetration and AI features driving incremental purchases.
Amazon ties much of the new capacity to customer commitments and expects most of the added computing to generate revenue in 2027–2028, which could ease near‑term cash pressure if demand and prices hold.