Amazon reported strong profits and net sales for its fiscal second quarter, with AWS cloud unit sales surging 37%. This was reported by Qazaqyia.kz citing Associated Press.
Sales in Amazon's cloud computing unit AWS rose 37% during the April-June period, faster than the 28% clip in the previous quarter and marking the fastest rate of growth in 18 quarters.
Amazon CEO Andy Jassy said AWS is "booming" and noted that its AI and chips businesses each eclipsed run rates of more than $25 billion. He also noted record delivery speeds for Prime members, with 40% more items delivered same-day or overnight.
Investors were watching to see if Amazon's $200 billion investment in AI, robots, semiconductors and satellites is paying off. The planned expenditure for the year marked a 60% increase from $128 billion in capital spending last year.
Amazon was among the last tech giants to report quarterly results. Google parent Alphabet reported better-than-expected revenue with 82% growth in its cloud business. Microsoft reported strong growth for its Azure cloud business.
In April, Amazon signed big deals with OpenAI, Anthropic and Meta. The company also expanded its partnership with OpenAI.
However, Amazon is experiencing higher tariff costs due to President Trump's trade policies. Rising shipping costs due to the Iran war could also cut into e-commerce revenue.
Amazon has been speeding up delivery through robotics, AI and more efficient warehousing. In May, the company began opening small order processing hubs in dozens of U.S. and foreign cities for 30-minute deliveries.