Amazon shares slumped as much as 10 per cent on Thursday after it announced plans to spend $200bn on capital expenditure in 2026, roughly a third more than Wall Street had forecast, as it increases its bet on AI.
The Seattle-based tech giant said capex would climb more than 50 per cent from nearly $130bn in 2025, having ploughed cash into building data centre infrastructure this year. Analysts had expected about $150bn in capex for 2026.
Andy Jassy, Amazon’s chief executive, said: “With such strong demand for our existing offerings and seminal opportunities like AI, chips, robotics and low Earth orbit satellites, we . . . anticipate strong long-term return on invested capital.”
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