Amazon (AMZN) got a strong lift after Andy Jassy used his annual shareholder letter to give investors something they had been asking for: harder numbers around AI demand and Amazon’s custom chip business. In the letter, Jassy said AWS’s AI revenue run rate is now above $15 billion and wrote that Amazon has “never seen a technology more quickly adopted than AI.”
That helped shift the conversation around the stock. Investors already knew Amazon was spending heavily on AI infrastructure. The letter gave them a more direct look at what that spending is already starting to produce.
The chip business gave the market a bigger surprise
One of the most eye-catching parts of the letter was the chip disclosure. Jassy said Amazon’s chips business, including Graviton, Trainium, and Nitro, now has an annual revenue run rate above $20 billion and is growing at triple-digit year-over-year percentages.
He also said the figure would be closer to about $50 billion if the business were sold externally, the way other chip companies sell directly to customers, instead of being monetized mainly through EC2.
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That makes the story more interesting than a simple AI enthusiasm trade. Amazon is not just asking investors to believe AWS will benefit from AI demand. It is making a stronger claim that custom silicon could become one of the most important pieces of its long-term economics by helping lower costs, support Bedrock, and reduce dependence on outside suppliers.
Jassy wrote that Trainium demand is booming and that the company expects the chips to save tens of billions of dollars in annual capital spending at scale while improving AWS margins by several hundred basis points.
The letter landed on top of a strong operating base
The shareholder letter also did not arrive in a vacuum. In fourth-quarter 2025 results, Amazon reported net sales of $213.4 billion, up 14% year over year, while AWS sales rose 24% to $35.6 billion. For the full year, net sales reached $716.9 billion, and AWS sales rose to $128.7 billion.
The same earnings release also showed why investors had been debating the stock so intensely in the first place. Amazon said it expects to invest about $200 billion in capital expenditures in 2026, largely tied to AI, chips, robotics, and other long-cycle growth areas.
At the time, that spending number raised fresh questions about whether the payoff would justify the cash outlay. Jassy’s letter did not erase that concern, but it did give investors more evidence that large parts of the AI buildout are already being monetized.
Amazon by the numbers
- AWS AI revenue run rate: more than $15 billion
- Chips business run rate: more than $20 billion
- Hypothetical externalized chip run rate: about $50 billion
- Q4 2025 net sales: $213.4 billion, up 14%
- Q4 2025 AWS sales: $35.6 billion, up 24%
- 2026 planned capital expenditures: about $200 billion
What Amazon’s chart says now
Amazon’s stock gained 5.60% on the session and closed at $233.65, a sharp move that improved near-term momentum but did not fully repair the broader chart. The stock now sits above both the 20-day exponential moving average (EMA) (light blue) at $213.04 and the 200-day EMA (dark blue) at $219.30, which is constructive after the recent pullback.
The bigger technical issue is still overhead. A prior resistance zone sits roughly between $241 and $259, and that area has already turned back rallies before. Thursday’s move pushed Amazon back toward that zone, but it did not clear it. For investors, that keeps the chart in an in-between position: stronger than it was, but not yet through the part of the range that would signal a cleaner breakout.
Where support sits now
The most obvious support area sits lower, roughly between $196 and $206. That band held as a prior support zone and helped contain earlier weakness. If Amazon gives back some of the post-letter move, investors will likely look first to the 20-day and 200-day EMAs, then to that broader support band beneath them.
That leaves the stock with a clear setup. Jassy’s letter gave investors a more compelling case for Amazon’s AI and chip ambitions, and the stock responded. The next question is whether that fresh enthusiasm is strong enough to carry shares through the heavier resistance area that still sits overhead.
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