Amazon Wouldn’t Be Doing What It’s Doing if AI Capex Was Going to Fail – AOL

Quick Read

• Amazon’s AWS backlog hit $496B growing triple digits YoY, with 2027 capacity largely reserved and management committing ~$200B in 2026 capex against real contracts.

• AWS grew 37%, its fastest pace in 18 quarters, achieving a 39% operating margin, with Anthropic and OpenAI already committing gigawatts of future capacity.

• Unlike Microsoft or Alphabet, Amazon’s vertically integrated chip stack gives it optionality the market hasn’t priced in. Graviton is now used by 98% of top EC2 customers.

I keep hitting the buy button on Amazon (NASDAQ:AMZN) because Amazon would not be unleashing the AI capex it is unleashing if there was a reasonable chance it was going to fail. That is the whole thesis in one sentence. When a management team with a two-decade record of long-duration bets tells shareholders it plans to spend about $200 billion in capital expenditures across 2026, that reflects a company reading its own order book and building against it.

What the Order Book Actually Says

The…