Amazon (AMZN) Stock Gains After CEO Doubles AWS Revenue Target to $600B

TLDR

• Amazon CEO Andy Jassy told employees AWS could hit $600 billion in annual revenue within a decade — double his previous $300 billion estimate.
• The forecast is driven by AI tailwinds, with Jassy crediting developments in AI for the raised target.
• AWS grew 20% last year to $128.7 billion, but reaching $600B by 2036 only requires ~14% annual growth — actually slower.
• Amazon is the biggest AI infrastructure spender among major U.S. tech firms, with $200 billion in planned capex this year.
• AMZN stock rose about 1% on the news but gains were quickly pared back.

Amazon CEO Andy Jassy told employees at an internal all-hands meeting that AWS could reach $600 billion in annual revenue within roughly a decade, Reuters reported. That figure is double the $300 billion estimate Jassy had previously given.

Amazon.com, Inc., AMZN

Jassy credited AI developments as the driver behind the raised target. He said AWS now has a chance to reach “at least double” his previous estimate thanks to the acceleration of AI adoption in cloud services.

Amazon’s total net sales hhttps://coincentral.com/microsoft-msft-eyes-legal-action-over-amazon-openais-50-billion-cloud-deal/it $716.9 billion in 2025, up 12% year-over-year. AWS contributed $128.7 billion of that, growing 20% in the year.

The $600 billion target would represent roughly five times AWS’s current revenue. But getting there by 2036 only requires annual growth of just over 14% — actually slower than last year’s pace.

That math didn’t exactly light a fire under investors. AMZN rose around 1% following the report but quickly trimmed those gains. The stock is down 6.8% so far this year.

The Capex Question

Amazon is spending more on AI infrastructure than any other major U.S. tech company. Its planned capital expenditure for this year stands at $200 billion — a figure that has investors asking hard questions about returns.

Jassy has defended the spending, telling employees that more upfront investment is needed to secure land, power, and hardware. His view is that the spending happens now so the payoff comes later.

But power costs keep rising, and there’s no clear sign capex is peaking. Amazon has also pledged to help offset rising energy costs for households, adding to its obligations.

AI Partnerships and Chip Bets

On the technology side, Amazon has been building out its AI ecosystem. AWS and chip startup Cerebras Systems have formed a collaboration aimed at raising the bar for AI inference speed in the cloud.

Amazon also recently teamed up with Nvidia on AI assistants for cars.

Its biggest bet may be a multi-year strategic partnership with OpenAI, involving up to $50 billion in investment. As part of that deal, OpenAI has agreed to adopt Amazon’s custom Trainium AI chips at scale.

Amazon is also developing its own in-house processors, with the hope that proprietary chips will lower the cost of delivering AI to customers over time.

For now, AWS generated $128.7 billion in revenue in 2025, and analysts project that figure to reach $161.2 billion this year.

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