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Amazon Shares Drop After Announcing $200 Billion AI Investment Plan

lite News Desk 2 min read

At a glance

  • Amazon plans to spend about $200 billion on AI and related areas in 2026
  • Shares fell 9–11% in after-hours trading following the announcement
  • 2026 capital spending target exceeds Wall Street forecasts by $50 billion

Amazon’s announcement of a substantial increase in capital expenditures for 2026, with a focus on artificial intelligence and related technologies, led to a sharp decline in its share price during after-hours trading.

The company stated it would raise capital spending by approximately 50–60% in 2026, reaching around $200 billion. This investment is aimed at expanding infrastructure for AI, robotics, semiconductors, and satellite operations.

Following the announcement, Amazon’s share price dropped between 9% and 11% in after-hours trading. The planned spending exceeded market expectations by about $50 billion, according to available reports.

Amazon’s leadership indicated confidence in the long-term benefits of this investment approach. CEO Andy Jassy stated that the company believes in the potential returns of its AI-focused strategy.

What the numbers show

  • Amazon’s Q4 2025 revenue reached approximately $213.4 billion
  • Net income for the same period was about $21.2 billion
  • AWS, Amazon’s cloud division, grew 24% year-over-year in Q4 2025

In the fourth quarter of 2025, Amazon reported year-over-year revenue growth of about 14%. The company’s net income for that quarter was approximately $21.2 billion.

Amazon Web Services (AWS), the company’s cloud computing unit, experienced a 24% increase in revenue compared to the same period the previous year. This growth contributed to overall company performance ahead of the new investment plan.

The planned capital expenditure for 2026 is described as the largest in Amazon’s history. The targeted $200 billion allocation is intended to strengthen the company’s capabilities in AI and supporting technologies.

Amazon’s 2026 capital spending plan is set to surpass previous projections by a considerable margin. The company’s announcement has drawn attention due to the scale of the investment and its immediate impact on market valuation.

* This article is based on publicly available information at the time of writing.

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