Bank of America expects Amazon’s second-quarter results to beat Wall Street estimates due to faster growth at Amazon Web Services (AWS), raising its AWS growth estimate to 33% from 31% and lifting its Q2 forecast to $198.8 billion of revenue and $24.1 billion of operating profit. The bank links stronger cloud demand to customers running Anthropic workloads and OpenAI models through Amazon Bedrock, AWS’s “pick-your-model” AI platform. AWS’s higher profitability means a larger revenue share from cloud can widen margins. However, the AI buildout may increase capital spending on data centers and chips, affecting near-term cash flow. When Amazon reports on July 30th, key signals include AWS growth, remaining contracted work (backlog), and whether management hints at a higher 2026 capital spending plan—BofA flagged a possible move toward about $210 billion. BofA’s 33% AWS call and a possible $210 billion 2026 capex outlook put margins and cash flow in tension, as cloud dollars carry higher incremental margins but a bigger spending plan can depress free cash flow. The stock’s reaction will likely depend on whether AWS strength shows sustained margin gains without a larger future spending surprise.