Amazon’s stock just did something big; it soared 11% overnight. Why? Because Amazon Web Services (AWS), the company’s cloud arm, is back to growing faster than it has since 2022.
Let’s get into what happened, why it matters, and what it means for Amazon’s AI-driven future.
Why Everyone Is Talking About Amazon Right Now
When Amazon dropped its Q3 2025 earnings on October 30, investors had reasons to smile.
The company reported $180.2 billion in sales, up 13% year-over-year, beating Wall Street expectations.
But the real gist?
AWS revenue jumped 20.2% to $33 billion, its fastest growth rate since 2022. That single number turned Amazon’s stock into the talk of Wall Street, rising from around $223 to nearly $250 in hours.
Still, behind that excitement, there’s a story of big bets on AI, rising capital spending, and fierce competition.
Slowing Growth and Investor Doubt
For much of 2023 and early 2024, Amazon faced tough times.
AWS, once its strongest performer, had slowed down to around 12–17% growth. Investors started asking:
“Has Amazon lost its edge to Microsoft Azure and Google Cloud?”
Meanwhile, higher costs, layoffs, and an FTC settlement created more doubts. Amazon’s free cash flow dropped sharply due to rising capital expenditures, not exactly music to investors’ ears.
In short:
Amazon needed a strong comeback. And this quarter, it delivered.
AWS and AI Powering the Comeback
Amazon’s latest report shows its AI investments are finally paying off.
CEO Andy Jassy highlighted two key drivers:
- Trainium2 chips — up 150% quarter-over-quarter, built to power AI workloads.
- Project Rainier — a supercomputer with nearly 500,000 chips supporting AI startups like Anthropic.
That’s not just tech jargon.
It means Amazon isn’t just renting out cloud servers anymore; it’s building the AI infrastructure powering the next generation of tools, apps, and companies.
What You Should Know About Amazon’s Q3 2025
- Net Sales: $180.2 billion (+13% YoY) — beating forecasts.
- AWS Revenue: $33 billion (+20.2% YoY) — fastest since 2022.
- Net Income: $21.2 billion ($1.95 per share) — vs. $1.57 expected.
- Operating Income: $17.4 billion — flat YoY, but hit by one-time charges.
- Free Cash Flow: $14.8 billion — down due to heavy capex ($125 billion for 2025).
- Stock Reaction: +11–13% in after-hours and early trading.
- Analyst Targets: Average raised to ~$300, with “Strong Buy” ratings.
Also Read: Amazon’s Trainium2 Chip Soars 150% in Q3, Powering AWS’s AI Dominance
Why it Matters to you and Every Investor
If you follow tech stocks, this moment matters.
Amazon’s growth story isn’t just about e-commerce anymore; it’s about owning the AI backbone of the internet.
Here’s what it means for you:
- If you’re an investor: AWS’s rebound signals long-term growth potential, but watch for margin pressure as AI investments rise.
- If you’re in tech: Amazon’s push into AI hardware and cloud infrastructure could open more partnerships and developer opportunities.
- If you’re just curious: This marks how AI is reshaping even the biggest tech giants, driving innovation, costs, and investor excitement.
Amazon’s AI-Powered Ambition
Amazon isn’t slowing down.
With capital spending jumping to $125 billion, the company is betting big on one thing: AI will drive the next wave of cloud growth.
Sure, competitors like Microsoft Azure and Google Cloud aren’t sitting still. But if AWS can sustain its new momentum, Amazon may have just entered its next growth chapter.
The 11% stock jump wasn’t just luck; it was the market saying:
“Amazon is back.”
