TLDRAmazon raised its 2026 capital expenditure forecast to about $220 billion, up from its earlier $200 billion guidance.AWS revenue increased 36.7% year over year to $42.2 billion, marking its fastest growth rate in 18 quarters.AWS backlog reached $496 billion, while much of Amazon’s 2027 cloud capacity is already committed.Amazon’s Trainium and Graviton chips have surpassed a $20 billion annual revenue run rate as AI demand grows.AMZN stock remains in focus as investors weigh stronger AWS growth against Amazon’s rising AI and cloud infrastructure spending.Amazon (AMZN) has raised its 2026 capital expenditure forecast to about $220 billion from an earlier $200 billion plan. The company linked the increase to higher memory and component costs, along with continued spending on artificial intelligence and cloud infrastructure. The move keeps AMZN stock focused on whether faster AWS growth can support the rising investment bill.Amazon.com, Inc., AMZNThe revised spending plan came with Amazon’s second-quarter results. Net sales rose 20% to $200.6 billion, while operating income increased 43% to $27.5 billion. Management expects third-quarter sales of $197 billion to $202 billion and operating income between $22.5 billion and $26.5 billion.AWS Growth Supports AMZN Stock Spending CaseAWS revenue climbed 36.7% from a year earlier to $42.2 billion, marking its fastest growth rate in 18 quarters. The cloud unit reached a $169 billion annualized revenue pace as demand for AI computing and cloud services remained strong.AWS operating margin rose to 39%, about 650 basis points above the same period last year. Its backlog reached $496 billion, more than twice the level reported a year earlier. Amazon said customers have already reserved much of its 2027 capacity, while some demand extends into 2028.Amazon is also increasing its use of in-house chips to support AI workloads. Trainium and Graviton products have passed a $20 billion annual revenue run rate, while Amazon is deploying the newer Trainium3 platform for large AWS customers.The company continues to report demand above available capacity. That gap has pushed Amazon to add data centers, servers, memory, networking equipment and power resources as customers reserve more computing capacity.Hyperscalers Increase Capital SpendingAmazon’s $220 billion plan stands above Microsoft’s expected 2026 capital spending of about $190 billion. Microsoft continues to expand Azure capacity as cloud demand remains strong, although power availability has limited some growth.Alphabet has raised its 2026 capital expenditure forecast to $195 billion to $205 billion. Google Cloud revenue grew 82% year over year. Together, the three companies show that AI infrastructure spending remains a major focus across cloud providers.The post Amazon (AMZN) Stock Eyes AWS Growth as Amazon’s $220B Spending Plan Expands appeared first on Blockonomi.