"AWS revenue climbed 20% year-over-year to $33 billion in the September quarter, topping analyst expectations of $32.5 billion and marking its fastest growth in nearly three years. The cloud division's rebound comes after several quarters of deceleration that had raised questions about Amazon's competitiveness in artificial intelligence and enterprise computing. Evercore ISI analyst Mark Mahaney described the resurgence as an "AWS unlock," highlighting a 150% sequential jump in revenue from Amazon's Trainium custom-chip business-an area that had previously been a source of investor skepticism."
""The AI narrative has flipped positive for AWS," Mahaney wrote, noting that demand for AI infrastructure and training workloads has reignited growth. Wedbush analyst Scott Devitt echoed the sentiment, observing a "positive narrative shift" as AWS growth improved from 17.5% in the June quarter to 20.2% in the September period. Devitt projects that AWS growth could reach 22% in the December quarter, citing rising demand, expanding backlog, and higher capital expenditures."
Amazon shares rose more than 12% to a 52-week high after stronger-than-expected third-quarter results and renewed momentum in cloud computing and advertising. AWS revenue increased 20% year-over-year to $33 billion, surpassing analyst estimates and marking its fastest growth in nearly three years. The cloud rebound follows quarters of deceleration and reflects stronger demand for AI infrastructure and training workloads, including a notable sequential revenue jump from Trainium custom chips. Analysts described a positive narrative shift for AWS and forecast further acceleration into the December quarter. The stock surge also helped lift major market indices including the S&P 500, Nasdaq, and the Dow.
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