Amazon on Thursday projected a more than 50% jump in capital expenditure this year, signaling an aggressive push into artificial intelligence infrastructure, a move that unsettled investors and sent its shares down about 9% in after-hours trading.
The company said it expects to invest around $200 billion in capital spending in 2026, up from about $131 billion last year, largely to expand data centers and AI capabilities. The forecast underscores that Big Tech firms are continuing their heavy AI investment cycle, even as concerns grow over rising costs and returns.
Amazon also issued a weaker-than-expected outlook for first quarter operating income, citing higher expenses related to its high-speed internet project, international retail pricing pressures and quick-commerce investments. The lower end of its profit forecast fell short of Wall Street estimates.
While demand for Amazon Web Services and AI infrastructure remains strong, investors appeared wary that spending would exceed near-term cash flows. Analysts said the market is increasingly sensitive to whether soaring AI investments can deliver sustained earnings growth.