SEATTLE, August 28, 2026, 17:20 (EDT).
- Amazon shares climbed 3.97% to $266.43, adding about $109.8 billion in market value.
- AWS plans two million additional Nvidia GPUs across its global infrastructure in 2027–2028.
- AWS second-quarter sales rose 37% to $42.2 billion; segment operating income reached $16.6 billion.
- Amazon’s trailing-12-month free cash flow turned to a $7.6 billion outflow as AI investment accelerated.
Amazon.com Inc. (NASDAQ: AMZN) gained 3.97% on Friday. The move added roughly $109.8 billion to its equity value.
The gain followed a large expansion of Amazon Web Services’ Nvidia infrastructure. The market-value increase equaled about 2.6 times AWS’s latest quarterly revenue.
AWS and Nvidia Corp. (NASDAQ: NVDA) plan to deploy two million additional GPUs during 2027 and 2028. That comes on top of more than one million GPUs AWS planned to add starting this year.
The fleet will include Blackwell Ultra, Rubin and Rubin Ultra processors. Nvidia Chief Executive Jensen Huang said “demand is running ahead of every forecast.”
The partnership extends beyond raw accelerator capacity. AWS plans secure infrastructure containing 100,000 GPUs for U.S. federal and national-security workloads.
AWS also disclosed efficiency gains for new services. EC2 G7 instances deliver 4.6 times the AI inference performance of G6. GPU vector indexing can run nine times faster at one-quarter of the cost.
Demand is already visible in Amazon’s accounts. AWS second-quarter sales rose 37% to $42.2 billion, the fastest growth in 18 quarters. Segment operating income increased 63% to $16.6 billion.
The expansion also raises Amazon’s investment hurdle. Companywide property and equipment purchases increased by $66.1 billion over the latest 12 months. Free cash flow swung from an $18.2 billion inflow to a $7.6 billion outflow.
| Investor measure | Latest figure | Why it matters |
|---|---|---|
| Additional Nvidia GPUs | 2 million in 2027–2028 | Expands sellable AI-compute capacity |
| Earlier GPU plan | More than 1 million from 2026 | Shows the scale-up is incremental |
| AWS Q2 sales | $42.2 billion, +37% | Revenue base absorbing new capacity |
| AWS Q2 operating income | $16.6 billion, +63% | Funds infrastructure expansion |
| Friday market-value gain | About $109.8 billion | Prices in substantial future returns |
Amazon closed at $266.43 after trading between $257.78 and $267.56. Volume was 49.3 million shares, almost equal to its recent daily average. The stock eased 0.04% to $266.31 after hours at 17:11 EDT.
Analyst targets frame the valuation test. The displayed average target was $327, implying about 22.7% upside. The range stretched from $230 to $405, while the latest listed UBS rating remained Buy with a $318 target.
The central question is utilization. Two million GPUs create revenue capacity only when customers rent them at attractive rates. Amazon did not disclose purchase costs, power needs or expected returns.
Risks: GPU supply, data-center power and construction delays could raise costs. Heavy dependence on Nvidia may also pressure economics, while Microsoft and Google continue expanding competing cloud capacity.
Friday’s rally therefore carried a demanding message. Investors rewarded AWS’s scale, but the next proof point is cash generation from that capacity.
Related articles: NASDAQ:AMZN
