"Revenue grew in the mid to high teens throughout the year, supported by rising enterprise demand and accelerating AI workloads. Amazon leaned heavily into its custom silicon strategy -- Trainium and Inferentia -- providing customers with more cost-efficient options for training and inference. Meanwhile, Bedrock made it easier for companies to build generative AI applications using Amazon's own models or those of partners like Anthropic. Rather than competing for consumer-facing AI attention, AWS focused on powering the back end of AI adoption."
"Amazon Web Services (AWS) cloud computing entered 2025 with questions hanging over its competitive position. But as the year progressed, AWS reasserted itself as Amazon's most important profit engine. Revenue grew in the mid to high teens throughout the year, supported by rising enterprise demand and accelerating AI workloads. Amazon leaned heavily into its custom silicon strategy -- Trainium and Inferentia -- providing customers with more cost-efficient options for training and inference."
"2025 marked a turning point for Amazon's advertising business. Annualized ad revenue exceeded $60 billion, outpacing retail, subscriptions, and even AWS. The driver was simple: Amazon sits at the intersection of shopping intent, first-party data, and media consumption. Prime Video's shift to an ad-supported tier gave Amazon immediate scale in streaming ads. Fire TV integration helped unify Amazon's connected TV footprint."
Amazon enters 2026 stronger and more diversified than a year earlier. Retail still defines the brand, but cloud computing, advertising, and AI increasingly drive the company's economics. AWS regained momentum as the primary profit engine, with mid- to high-teens revenue growth fueled by enterprise demand, AI workloads, custom silicon (Trainium, Inferentia), and Bedrock for generative AI. Advertising became the fastest-growing segment, surpassing $60 billion in annualized revenue, leveraging shopping intent, first-party data, Prime Video's ad-supported tier, and Fire TV integration. AWS focus on backend AI infrastructure deepened customer stickiness and expanded long-term opportunities.
Read at The Motley Fool
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