Amazon Raises Q2 Revenue Forecast Driven by AI, AWS Growth

Amazon.com is expected to report strong second-quarter earnings driven by robust U.S. retail sales, favorable foreign exchange effects, and growing demand for its AI-powered Amazon Web Services (AWS). Analysts have raised their price targets and earnings estimates, anticipating revenue around $162 billion and profit exceeding $17 billion, supported by accelerating e-commerce trends and efficiency gains from AI integration in logistics. AWS growth, while slightly moderating from the previous quarter, remains a key driver, with expectations of renewed acceleration in the latter half of the year due to AI infrastructure investments. Additionally, Amazon is advancing its AI capabilities with a proprietary model named Nova, aiming to compete with leading AI platforms such as OpenAI's ChatGPT. Analysts also highlight improvements in labor productivity and cost structure as critical factors underpinning Amazon's long-term growth potential and attractive valuation compared to other Big Tech firms. Overall, Amazon's innovation in AI and operational efficiency, combined with strong consumer demand, underpin a bullish outlook for its upcoming earnings report and beyond.