{"id":261743,"date":"2025-10-30T23:51:08","date_gmt":"2025-10-30T23:51:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/261743\/"},"modified":"2025-10-30T23:51:08","modified_gmt":"2025-10-30T23:51:08","slug":"amazon-shares-jump-13-as-ai-powers-fastest-cloud-growth-in-years","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/261743\/","title":{"rendered":"Amazon shares jump 13% as AI powers fastest cloud growth in years"},"content":{"rendered":"

Unlock the Editor\u2019s Digest for free<\/p>\n

Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.<\/p>\n

Amazon\u2019s cloud business has reported its strongest quarterly growth in nearly three years amid booming demand for computing power linked to artificial intelligence.<\/p>\n

The company\u2019s shares jumped by about 13 per cent in after-hours trading on Thursday after Amazon Web Services posted a 20 per cent surge in sales to $33bn.<\/p>\n

Growth at AWS, which rents server space to businesses to run their online services, beat analyst estimates for sales of $32.4bn and reassured investors who had been concerned the world\u2019s largest cloud provider was losing ground to rivals such as Microsoft and Oracle.<\/p>\n

Amazon\u2019s overall revenues for the three months to the end of September rose 13 per cent to $180.2bn, while net income grew almost 40 per cent to $21.2bn compared with the same period last year.<\/p>\n

Both revenues and income beat Wall Street predictions for $178bn and $17bn respectively, according to figures compiled by Visible Alpha.<\/p>\n

Chief executive and president Andy Jassy said that strong growth was due to AI driving \u201cmeaningful improvements in every corner of our business\u201d.<\/p>\n

\u201cAWS is growing at a pace we haven\u2019t seen since 2022,\u201d he said. \u201cWe continue to see strong demand in AI and core infrastructure, and we\u2019ve been focused on accelerating capacity.\u201d<\/p>\n

Amazon<\/a> is vying with its competitors to source the data centres, chips and energy needed to create and run advance AI models. Rivals Google and Microsoft also posted better than expected cloud growth in their earnings on Wednesday.<\/p>\n

Amazon is the \u201cprimary\u201d cloud provider to, and a major investor in, Anthropic, maker of the Claude chatbot \u2014 which also recently signed a significant supply deal with Google. Oracle and Microsoft have meanwhile struck huge agreements to supply computing power to OpenAI. <\/p>\n

\"Column<\/p>\n

The Seattle-based company has been growing its data centre footprint to expand its computing capacity. It said it had added more than 3.8 gigawatts of computing power in the past 12 months.<\/p>\n

Amazon\u2019s capital expenditure on AI infrastructure such as chips and data centres was $34.2bn in the quarter, higher than the $31.5bn expected by analysts, bringing the total it has spent so far this year to $89.9bn.<\/p>\n

Recommended<\/p>\n

\"Montage<\/a><\/p>\n

Combined with Google, Meta and Microsoft, the four tech giants spent $112bn on capex in the past quarter alone.<\/p>\n

Jassy told investors in February that Amazon\u2019s capital expenditure would total about $100bn this year.<\/p>\n

Earlier this week, Amazon announced plans to cut 14,000 jobs<\/a> across its corporate workforce as it looks to reduce costs while it expands spending on AI. <\/p>\n

The company has been building its own \u201cTrainium\u201d AI chips in-house, as well as buying vast quantities of chips from Nvidia, Broadcom and AMD, as it seeks to reduce the cost of running AI services.<\/p>\n

Jassy said during a call with analysts on Thursday that the job cuts were not directly driven by AI, adding \u201cnot right now at least\u201d. He said Amazon wanted to operate \u201clike the world\u2019s largest start-up\u201d and move quickly to capture a huge transformation happening in technology.<\/p>\n

The ecommerce group also reported robust retail sales, including record revenue from its annual \u201cPrime Day\u201d promotion in July. Amazon has increased sales even as its sellers have been hit by volatile US-China trade relations.<\/p>\n

Amazon guided that revenues in the fourth quarter of the year would be between $206bn and $213bn, a growth rate of 10 or 13 per cent year-on-year. Analysts had anticipated fourth-quarter sales of about $208.5bn.<\/p>\n

Amazon reported its earnings just 10 days after its cloud business Amazon Web Services suffered a widespread outage<\/a> that forced customers\u2019 websites and apps offline. <\/p>\n

Additional reporting by Rafe Rosner-Uddin<\/p>\n","protected":false},"excerpt":{"rendered":"Unlock the Editor\u2019s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this…\n","protected":false},"author":2,"featured_media":261744,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[182,181,507,74],"class_list":{"0":"post-261743","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-artificialintelligence","11":"tag-technology"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/261743","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=261743"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/261743\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/261744"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=261743"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=261743"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=261743"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}