Amazon sees $200 billion in capex ahead, AWS sales surge 24%

Amazon met fourth quarter earnings estimates, slightly topped revenue targets and saw AWS sales jump 24% from a year ago. The real whopper was Amazon’s capital expenditure projection of $200 billion in 2026. 

CEO Andy Jassy said the capital expenditure projection covers AI, chips, robotics and low earth orbit satellites. “Growth is happening because we’re continuing to innovate at a rapid rate, and identify and knock down customer problems,” said Jassy in a statement. “With such strong demand for our existing offerings and seminal opportunities like AI, chips, robotics, and low earth orbit satellites, we expect to invest about $200 billion in capital expenditures across Amazon in 2026.”

Simply put, Amazon saw Google’s capital expenditures of $175 billion to $185 billion and decided to up the ante. Keep in mind that Amazon’s capital spending also covers distribution centers and buildings. 

Amazon reported fourth quarter net income of $21.2 billion, or…