Amazon (AMZN) recently smashed past a historic $3 trillion market cap following stellar Q2 2026 earnings. Revenue jumped 20% year-over-year to $200.6 billion, powered by an absolute tear in Amazon Web Services (AWS), which accelerated by 37%. With a massive $496 billion cloud backlog, AWS is proving that its enterprise AI demand is translating into real, high-margin scale.

Despite lifting its 2026 capital expenditure guidance to a hefty $220 billion to build out more AI data centers, investors are shrugging off the spending. Why? Because management noted that AI returns are tracking even faster than core cloud adoption did a decade ago, backed by a booming digital ads segment pulling in near-$80 billion annualized.

Trading around $278, AMZN looks ready to test new highs. While heavy infrastructure spending will keep short-term cash flow tight, the structural momentum in cloud and e-commerce efficiency makes this tech titan a premier long-term compounder.