Amazon’s stock surged 15% in a single day after the company reported second-quarter financial results that exceeded analysts’ expectations. The growth was driven by Amazon Web Services (AWS), which achieved revenues of $42.2 billion for the quarter, marking a 36.7% year-over-year increase. CEO Andy Jassy said the company added over $4.6 billion in revenue from the previous quarter, approximately 80% more than its largest previous quarterly increase. AWS’s backlog stands at $496 billion, showing triple-digit growth from the previous year. Jassy stated, “Customers choose AWS because we offer the broadest capabilities. They want their AI inference to reside near their other applications and data, and more of it resides in AWS than anywhere else.” Amazon also announced its custom chip business has surpassed a $25 billion annualized revenue run rate, with triple-digit growth. The company plans to elevate capital expenditures from approximately $200 billion to around $220 billion. Arun Sundaram, a senior vice president at CFRA Research, called the results a “home run.” Jassy noted that demand for AI and cloud computing currently exceeds server capacity, with planned expansion for 2027 filling up quickly and extending into 2028. AWS is now achieving an annual revenue run rate of approximately $170 billion, over four times its size from 2019. Year-to-date, Amazon shares have risen by 17%.