Amazon AWS Scores 20% Growth Driven by Surging AI Demand

Amazon's Q3 2025 earnings revealed a strong performance driven primarily by Amazon Web Services (AWS), which posted a 20% year-over-year revenue increase to $33 billion, marking its fastest growth pace in over two years. AWS's expansion is fueled by surging demand for AI and cloud infrastructure, with Amazon investing billions to increase capacity, including adding over 3.8 gigawatts in the past year and opening new infrastructure regions such as New Zealand. Despite a slight miss on operating profit due to one-time expenses, Amazon's overall net sales rose 13.4% year over year, surpassing market expectations and leading to significant stock price gains. Analysts, including Everbright Securities and Morgan Stanley, have raised revenue forecasts and price targets, citing the robust AWS backlog and accelerated client signings, especially for AI-driven services. Amazon's strategy reflects a broader industry trend emphasizing cloud infrastructure as critical to the next phase of digital transformation, even as the company shifts resources toward AI development. The strong AWS growth and infrastructure investments underscore Amazon's intent to maintain cloud leadership amidst escalating global demand for computing power.