Amazon Hits $3 Trillion as AWS Posts 37% Growth But Struggles to Meet Demand
Amazon has joined a rare group of companies by surpassing a $3 trillion market valuation. Its cloud division, AWS, recorded $42.2 billion in quarterly revenue, marking 37% year-over-year growth — its fastest rate in over four years. Despite Amazon planning capital expenditure of around $220 billion for 2026, CEO Andy Jassy acknowledged that AWS will still lack sufficient capacity to meet customer demand through 2025 and into 2026. The shortfall highlights a broader shift in the AI industry, where the key bottlenecks are no longer algorithms or talent but physical infrastructure such as chips, power, and data centers. Analysts and developers are increasingly focused on compute efficiency and workload optimization as cloud capacity becomes a scarce and strategically critical resource.
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