Amazon (AMZN) Eyes $200B AI Capital Expenditure, Sent Shares Down 11% Post-Market

Amazon CEO Andy Jassy signaled strong confidence in the company's aggressive AI investment despite market unease over a $200 billion capital expenditure forecast, sending AMZN down 11% in after-hours trading on February 6, 2026. The 2026 figure, well above analysts' expectations, reflects a 49% increase from $1.31 trillion in 2025 to $2.00 trillion, up from $830 billion in 2024. The outlay is driven by expanding data centers, chips, and networking equipment to meet surging AI compute demand. While AWS revenue rose 24% year-over-year to $35.6 billion in 2025, the strategy is to build long-term competitive advantage, with AWS growth potentially accelerating as compute supply tightens. Amazon added nearly 4 gigawatts of compute capacity in 2025 and plans to double its compute footprint by 2027. The market remains focused on when the investment will generate returns, as the industry-wide AI compute boom continues to outpace short-term earnings impacts.