Investors love AI, as long as you’re a cloud host

Amazon beat earnings expectations, with AWS revenue up 37% and total net sales up 20%, lifting the stock after hours.

The company raised its 2026 capex forecast to $220 billion and kept pouring money into data centers, chips, and AI infrastructure.

Investors appear willing to reward cloud providers that can monetize AI demand, even as they remain cautious about heavy-spending AI firms without clear revenue.

The piece suggests Amazon, like other major cloud players, is being valued more for AI infrastructure and cloud cash generation than for near-term profit discipline.