Amazon Rides on 28% AWS Growth in Q1: Buy, Sell or Hold the Stock?

Amazon AMZN closed first-quarter 2026 with a headline number that recaptured investor attention: AWS revenues expanded 28% year over year to $37.6 billion, the cloud unit’s fastest growth in 15 quarters. Total net sales rose 17% to $181.5 billion, while operating income climbed to $23.9 billion from $18.4 billion in the year-ago period. North America segment sales rose 12% to $104.1 billion, and International segment sales jumped 19% to $39.8 billion. The release reignited the AI thesis, but rising capital intensity and execution risks invite caution.

AWS Reacceleration, Custom Silicon and Recent AI Announcements

The cloud unit’s reacceleration is the cleanest read on enterprise AI demand. AWS’ operating income reached $14.2 billion, up from $11.5 billion. Amazon’s custom-silicon business — Graviton, Trainium and Nitro — surpassed a $20 billion annual revenue run rate, growing triple-digit percentages. The company landed over 2.1 million AI chips in the trailing…