Amazon AWS Growth Soars 20% Driving Shares Up 13% Amid AI Demand

Amazon's shares surged over 12% in premarket trading following impressive growth in its cloud division, Amazon Web Services (AWS), which reported a 20% revenue increase in the third quarter, driven by strong demand for AI and infrastructure. AWS revenue reached $33 billion, significantly outperforming competitors like Google Cloud, while CEO Andy Jassy highlighted that AWS is growing at its fastest pace since 2022. Additionally, Amazon's retail revenue rose 11% year-over-year, and advertising sales jumped 24%, with innovative advertising strategies enhancing margins and diversifying revenue streams. The company plans to double AWS capacity by 2027 to 4.8 GW and expand its grocery delivery service to 2,300 cities, positioning itself as the third-largest grocery business in the U.S. AI integration, particularly through the Rufus shopping assistant, is expected to add $10 billion in annual sales, signaling Amazon's continued leadership in AI-driven growth. Despite recent job cuts attributed to cultural factors, Amazon's strong financial health and expanding operating margins underscore its dominant position across cloud, retail, and advertising sectors.