Amazon Stock Surges 5% as AWS Hits $15 Billion in AI Revenue and Satellite Talks Heat Up

Amazon shares jumped 5% on Thursday following a cascade of bullish catalysts, primarily driven by CEO Andy Jassy’s annual shareholder letter. In the letter, Jassy revealed that Amazon Web Services (AWS) is now generating over $15 billion in annualized AI revenue, with its internal chip business (including Trainium and Graviton) exceeding $20 billion in value. Jassy doubled down on his aggressive strategy, confirming a staggering $200 billion capital expenditure plan for 2026 to build a massive "once-in-a-lifetime" AI infrastructure moat. Adding fuel to the rally, reports surfaced that Amazon is in acquisition talks with Globalstar to bolster its Project Kuiper satellite network against SpaceX's Starlink, while Amazon Pharmacy announced a market-disrupting same-day delivery service for Eli Lilly's new GLP-1 weight-loss pill. Despite concerns over a sharp decline in free cash flow, Wall Street remains highly optimistic about Amazon's long-term enterprise dominance.

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