📈 Amazon AI Blitz: US$ 200 Bn Capex Surge Triggers Share Tumble

Amazon has projected a massive 50% increase in capital expenditures for 2026, driven by a global race to build out artificial intelligence infrastructure. Despite record revenues, shares dropped 11.5% in after-hours trading as investors weighed the immense costs against near-term returns. • Core Financials & AWS Growth • Amazon Web Services (AWS) revenue reached US$ 35.6 Bn in Q4, growing 24% YoY. • While AWS growth is the highest in 13 quarters, it trails competitors Google Cloud (+48%) and Microsoft Azure (+39%). • Total Q4 revenue hit US$ 213.4 Bn (+14% YoY), with advertising sales jumping 22% to US$ 21.3 Bn. • AI Infrastructure & Tech Investments • Projected 2026 Capex: US$ 200 Bn, significantly exceeding analyst estimates of US$ 146.6 Bn. • Spending focuses on AI chips (Trainium/Graviton), data centers, and the Leo satellite internet project. • Total spending by the "Big Four" hyperscalers is expected to exceed US$ 630 Bn this year. • Retail Pivot & Logistics • Amazon is retreating from physical retail, closing all 72 Amazon Fresh and Go stores. • Strategy shift: Doubling down on Whole Foods with 100+ new stores and a 225,000-sq-ft mega-store. • Cost-cutting: 30,000 corporate layoffs implemented since late 2025 to drive AI-led efficiencies. _Summary based on provisional Q4 2025 financial data._