Amazon shares fall sharply after forecast shows massive increase in AI infrastructure spending
Shares in Amazon dropped on Thursday as the firm announced plans to spend $200 billion this year. The funds will bolster AI capacity and retail operations.
Insights:
Amazon.com, Inc. announced on February 5, 2026, in the US 
US that it expects capital expenditures to surge by more than 50% to approximately $200 billion in 2026, up from roughly $131 billion in 2025. This massive increase in spending is primarily driven by investments in artificial intelligence infrastructure and various retail initiatives. The announcement triggered a sharp decline in the company's stock price, with shares falling as much as 11% in after-hours trading, as the company also provided first-quarter operating income guidance that came in below analyst estimates.
US that it expects capital expenditures to surge by more than 50% to approximately $200 billion in 2026, up from roughly $131 billion in 2025. This massive increase in spending is primarily driven by investments in artificial intelligence infrastructure and various retail initiatives. The announcement triggered a sharp decline in the company's stock price, with shares falling as much as 11% in after-hours trading, as the company also provided first-quarter operating income guidance that came in below analyst estimates.
