Amazon AWS grows 37% – Cloud stock a buy now?

Key takeaways

• AWS increased revenue in the second quarter of 2026 by 37 percent to $42.2 billion – the fastest growth in 18 quarters (Source: Börse Express, 15.08.2026).
• AWS's annualized revenue run rate is $169 billion with a backlog of $496 billion (Source: Yahoo Finance, 03.08.2026).
• Amazon is investing a total of $220 billion in AI and cloud infrastructure in 2026 and plans a gas power plant with 7.65 gigawatts capacity in Texas (Source: Der Aktionär, 03.08.2026; Börse Express, 15.08.2026).
• AWS's AI run rate currently stands at over $25 billion, supported by an Anthropic partnership with contracts worth $100 billion over ten years (Source: Börse Express, 15.08.2026).
• Amazon reached a market capitalization of over $3 trillion in August 2026, with the stock jumping more than 10 percent after-hours following quarterly results (Source: Yahoo Finance, 03.08.2026; XTB, 31.07.2026).
• Analysts have 39 buy ratings with only one hold rating, with price targets ranging from $325 to $400 (Source: Börse Express, 15.08.2026).

AWS delivers fastest growth in 18 quarters

Amazon Web Services (AWS) – Amazon's cloud computing division that provides computing power, storage, and databases over the internet – reported revenue of $42.2 billion in the second quarter of 2026. This represents growth of 37 percent compared to the prior-year quarter and marks the fastest expansion pace in 18 quarters, as Börse Express reported on August 15, 2026.

The annualized revenue run rate – the quarterly revenue extrapolated to a full year – currently stands at $169 billion. AWS's backlog totals $496 billion, indicating contracts that have been concluded but not yet fully billed (Source: Yahoo Finance, 03.08.2026).

Amazon's overall company generated revenue of $200.61 billion in the second quarter, a gain of 19.6 percent year-over-year. Earnings per share (EPS) – the profit attributable to a single share – totaled $5.75, well above the average analyst expectations of $1.82 (Source: Börse Express, 15.08.2026).

CEO Jassy sees potential for billion-dollar business

On August 3, 2026, Amazon CEO Andy Jassy put AWS's long-term potential at $1 trillion in annual revenue. Jassy explained that demand for AI and cloud capacity continues to exceed available supply. A substantial portion of AWS compute capacity for 2027 is already reserved, with significant advance bookings for 2028 as well (Source: Der Aktionär, 03.08.2026).

The operating leverage is substantial: the more customers demand AI and cloud capacity, the more fully AWS can utilize its infrastructure. According to Amazon, the company is investing in servers, chips, and data centers for which demand already exists and which can be utilized over years.

Investment offensive: $220 billion and a Texas gas power plant

Amazon raised its planned infrastructure investments for 2026 to $220 billion (Source: Der Aktionär, 03.08.2026). A central component of this offensive is a comprehensive AI campus in Pecos County, Texas. The project includes the following components:

• A gas power plant with 35 turbines and installed capacity of 7.65 gigawatts, designed to autonomously meet the electricity demand of modern AI computing clusters
• Options for 750 megawatts of photovoltaic capacity
• Battery storage with a capacity of 1.8 gigawatts

By 2040, the company aims for carbon neutrality and has already initiated projects in Texas for 10 gigawatts of carbon-free energy (Source: Börse Express, 15.08.2026).

Anthropic partnership secures AI revenue over ten years

Amazon increased its investments in AI startup Anthropic – developer of the Claude chatbot – to approximately $13 billion, with options to expand to up to $33 billion. In return, Anthropic committed to spending more than $100 billion on AWS cloud services over the next ten years (Source: Börse Express, 15.08.2026).

AWS's AI run rate – annual revenue from AI products annualized – currently stands at over $25 billion (Source: Börse Express, 15.08.2026).

Stock price breaks $3 trillion mark

The Amazon stock surged more than 10 percent in after-hours trading following the quarterly report in late July (Source: XTB, 31.07.2026). The market capitalization broke through the $3 trillion mark for the first time (Source: Yahoo Finance, 03.08.2026).

AWS's 37 percent growth significantly exceeded earlier forecasts: a stock analysis from March 25, 2026, had expected growth of around 30 percent for the second quarter (Source: aktiencheck.de, 25.03.2026).

Analyst views: Buy ratings with price targets up to $400

Following the quarterly results, several research houses adjusted their assessments:

• Citi raised its price target from $325 to $350
• Roth MKM increased the target from $300 to $325
• The highest price target currently stands at $400

Market consensus reflects 39 buy ratings with only one hold rating (Source: Börse Express, 15.08.2026).

Institutional moves: Thrive Capital builds position

In shareholder composition, there are mixed trends: Thrive Capital built up its position through purchases valued at approximately $215 million (Source: Börse Express, 15.08.2026).

Assessment: Cloud dynamics meet high valuation

The AWS figures document an acceleration of cloud growth, driven by AI demand and long-term contracts. The operating leverage of the cloud division could intensify if capacity booked years ahead is indeed fully utilized.

The valuation of over $3 trillion presumes that Amazon converts its $220 billion in investments into corresponding cash flows in the foreseeable future. The Anthropic partnership does secure a portion of revenue over a decade, but also ties up capital in an still-nascent AI market.

The broad buy recommendation from analysts reflects operational strength but leaves little room for disappointments. Investors in the DACH region should note that the stock is denominated in US dollars and currency fluctuations against the euro may affect returns.