For years, Amazon has asked Wall Street to be patient. The spending is heavy, the timeline is long, and the payoff is coming—trust the process, essentially.
Andy Jassy’s annual shareholder letter, published April 9, reads differently. This time, he isn’t asking for patience so much as offering receipts. Misryoum newsroom reported that in the letter, Jassy put hard numbers around Amazon’s AI and chip businesses for the first time, and the market responded by pushing the stock higher.
The big headline is AWS AI. Misryoum analysis indicates AWS’s AI revenue run rate is now above $15 billion as of Q1 2026, and for many investors that crosses a psychological line—going from “maybe later” to “right now.” It’s also the first time Amazon disclosed this figure, which matters because vague promises are easier to doubt. For a second, you can almost picture the conference-room quiet when someone finally slides a chart across the table and the room stops guessing. (I remember that exact kind of hush—someone’s coffee lid clicking in the background—though obviously not in Amazon’s boardroom.)
In context, AWS’s total annualized revenue run rate is approximately $142 billion, according to Misryoum reporting. That means AI services already represent roughly 10% of the entire AWS business. Jassy described the momentum as “ascending rapidly,” Misryoum editorial desk noted, and demand is outpacing supply. AWS added 3.9 gigawatts of new power capacity in 2025 and expects to double its total power capacity by the end of 2027, but Misryoum analysis also points to the reality that some customers still can’t get the compute they want.
Then there are the chips—because AI margins live or die on access and economics. Jassy disclosed that Amazon’s chip business, including Graviton, Trainium, and Nitro, now has an annual revenue run rate above $20 billion, growing at triple-digit rates year-over-year. Misryoum newsroom reported that this figure doubled from Q4 2025. “Our chips business is on fire,” Jassy wrote, and he added that it “changes the economics for AWS, and will be much larger than most think.” Even the language is confident, like he’s trying to shut down the skepticism before it starts.
The demand signals Misryoum editorial team stated are almost comically tight. Trainium2 has largely sold out. Trainium3, which started shipping in early 2026, is nearly fully subscribed. Trainium4—still about 18 months from broad availability—has already been significantly reserved. Two large customers even asked to buy all of Amazon’s available Graviton chip capacity for 2026, according to Misryoum reporting. And Misryoum analysis notes that Graviton is now used by 98% of the top 1,000 EC2 customers. If you zoom out, it’s the kind of adoption rate that stops being “early” and starts looking structural.
Jassy’s capex argument ties the bow on the whole package, though he makes it sound less like a bet and more like a plan. Amazon has said it plans to spend approximately $200 billion in capital expenditures in 2026, mostly tied to AI, chips, and infrastructure. Jassy wrote, “We’re not investing approximately $200 billion in capex in 2026 on a hunch,” Misryoum newsroom reported. He said existing commitments cover “a substantial portion” of the capex spend and that Amazon expects to monetize most of it in 2027 and 2028.
Among those commitments is a deal with OpenAI worth more than $100 billion, Misryoum editorial desk noted. Jassy also insisted, “We’re not going to be conservative in how we play this,” saying AI is a once-in-a-lifetime opportunity where current growth is unprecedented and future growth even bigger, according to Misryoum reporting. Misryoum analysis also highlighted key figures from the letter: AWS AI revenue run rate (Q1 2026) above $15 billion; AWS total annualized revenue run rate approximately $142 billion; chip business run rate more than $20 billion; standalone chip value if sold externally approximately $50 billion; 2026 capex about $200 billion; OpenAI commitment more than $100 billion; Trainium3 nearly fully subscribed; Trainium4 already significantly reserved.
Even without instant fireworks on the income statement, Misryoum analysis suggests the letter can change sentiment. Misryoum newsroom reported that analysts at Jefferies said the letter made them more constructive on Amazon, reiterating a buy rating and $300 price target, and that Trainium and Graviton are becoming a “structural advantage” for AWS.
Amazon may still be in the middle of a heavy spending cycle. But Jassy’s approach—less “trust us” and more “here’s what’s already happening”—makes the payoff story harder to dismiss. And honestly, once the numbers are on the page, investors tend to stare at them for a while… then decide what they think they mean.