For years, the story at Amazon was simple: trust the process. Wall Street spent a long time being told to look past the heavy spending and the endless build-out, waiting for a payoff that always felt just over the horizon. But when Andy Jassy released his annual shareholder letter on April 9, the tone felt different. There was no ask for patience this time. Instead, he’s showing receipts. The smell of stale coffee from my desk is getting stronger as I sift through these numbers, but honestly, it’s refreshing to see some actual data for once.
Jassy finally put hard numbers around Amazon’s AI and chip businesses, and the market didn’t hesitate, pushing the stock higher, Misryoum noted. The big reveal? The AWS AI revenue run rate is now north of $15 billion as of Q1 2026. Considering that AWS has a total annualized run rate of about $142 billion, those AI services are already grabbing a 10% slice of the pie. It’s no longer just a hypothetical future revenue stream.
Then there’s the hardware. The chip business—covering Graviton, Trainium, and Nitro—is doing over $20 billion annually with triple-digit growth. Jassy even claimed that if they sold these chips externally like Nvidia, the business would be hitting $50 billion. It’s pretty wild. Trainium2 is sold out, Trainium3 is nearly subscribed, and people are already lining up for Trainium4 even though it’s 18 months out.
It’s a lot of money flying around. Amazon is planning to drop roughly $200 billion in capex in 2026, which sounds insane until you look at the commitment pile. Jassy says these aren’t just hunches; they have the receipts, like that $100 billion-plus deal with OpenAI. “We’re not going to be conservative,” he wrote. You can feel the urgency.
Ultimately, analysts at Jefferies are feeling more bullish, sticking to their $300 price target. Whether this changes the income statement immediately is one thing, but it’s definitely changing the vibe. For a stock that’s been in a holding pattern for years, clarity is a hell of a drug. Jassy isn’t just betting on the future; he’s betting on the fact that the future is already here, even if it’s expensive as hell to build.