For years, Amazon basically told Wall Street to just hang tight. The spending was massive, the timeline felt endless, and we were all just supposed to trust the process. Well, Andy Jassy’s annual shareholder letter from April 9 shifts the tone entirely. This time, he isn’t asking for patience—he’s showing the receipts.
I’m sitting here looking at these numbers, and there’s a noticeable shift in how the market is reacting. Jassy dropped some hard data on AI and chip performance for the first time, and the stock’s reaction was immediate. According to Misryoum, the market clearly liked what it saw.
Here is the real kicker: AWS’s AI revenue run rate hit over $15 billion in Q1 2026. That’s not a vague projection or a fluff piece; it’s a milestone. Since the total AWS business is tracking at about $142 billion, AI is already carving out a 10% slice of that massive pie. Jassy says demand is “ascending rapidly,” and honestly, the supply struggle is real—AWS added 3.9 gigawatts of power capacity last year and needs to double that by 2027 just to keep up, or maybe they’re just trying to keep their heads above water.
The chip business is arguably even more aggressive. We’re talking about Graviton, Trainium, and Nitro hitting a $20 billion run rate with triple-digit year-over-year growth. That figure literally doubled since the end of 2025. I heard a rumor—well, I read in Misryoum—that two major customers tried to buy up all of Amazon’s available Graviton capacity for 2026. If Amazon decided to sell these chips externally like Nvidia, Jassy claims they’d be looking at $50 billion in annual revenue. It’s wild.
Then there’s the $200 billion capex question for 2026. Is it a gamble? Jassy insists it isn’t. He claims it’s backed by customer commitments, including a massive $100 billion deal with OpenAI. It’s a lot of money to throw at infrastructure, but he’s betting that 2027 and 2028 will be the payoff years.
Analysts at Jefferies seem to be buying the narrative, reiterating a buy rating and a $300 price target. It’s funny how a bit of transparency changes everything. The spending cycle isn’t over—far from it—but at least now there’s a clearer map of where the money is actually going. Or maybe it’s just a really good marketing pitch. Either way, the investors seem satisfied for now.