Amazon Doubles AWS Forecast to $600B, Defends $200B AI Spending

Edgen Stock·Mar 17 2026, 21:32

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Key Takeaways

Amazon CEO Andy Jassy revealed a new long-term target for Amazon Web Services (AWS) to achieve $600 billion in annual revenue, doubling the previous forecast on the back of explosive demand for artificial intelligence. To fuel this expansion, the company is proceeding with its approximately $200 billion capital expenditure plan for the year, framing it as a critical investment in next-generation AI infrastructure.

New Forecast: CEO Andy Jassy doubled the long-term annual revenue target for AWS to $600 billion, citing immense demand for AI services.
Massive Investment: The company is defending its ~$200 billion annual capital expenditure plan as a necessary upfront cost to build the infrastructure required to meet AI-driven cloud demand.
Bullish Analysts: Wall Street sentiment appears positive, with firms like Wolfe Research raising price targets to $255 and forecasting near-term AWS growth rates as high as 30%, outpacing the company's implied long-term target.

Amazon Doubles AWS Revenue Goal to $600 Billion

In a recent internal meeting, Amazon CEO Andy Jassy set a new, far more ambitious target for the company's cloud division, projecting that artificial intelligence will help Amazon Web Services (AWS) reach $600 billion in annual sales. This figure doubles his previous 10-year forecast of $300 billion. Starting from AWS's 2025 sales of $128.7 billion, which grew 19% year-over-year, the new target implies a compound annual growth rate of nearly 17% for the next decade. Jassy directly linked this aggressive goal to customer demand for AI capabilities, stating it represents a foundational shift in the market.

$200B Capex Plan Underpins Growth Strategy

Jassy defended the company's approximately $200 billion capital expenditure plan for the year, directly addressing Wall Street concerns about the scale of the investment. He framed the spending not as speculation but as a direct response to tangible customer needs, which must be front-loaded years before revenue is realized. Jassy stated the company is not investing the capital on a whim.

AI provides a very rare opportunity to build an extremely large business, and we have seen very clear and strong demand signals. We are not investing this $200 billion in capital expenditure because we hope AI will be big.

— Andy Jassy, CEO.

This strategy is supported by bullish analyst sentiment. Wolfe Research recently raised its price target for Amazon to $255 from $250, forecasting AWS annual revenue growth of approximately 30% over the next three years—well above Wall Street's consensus of 25%. The firm cited AI demand and collaborations, such as its partnership with Anthropic, as key drivers. Following the internal meeting, Amazon's shares rose approximately 1.75% to $215.44, signaling investor confidence in the AI-focused spending plan.