Stocks rally after President Donald Trump says he will restart talks with Iran.

JPMorgan raised its Amazon stock target after AWS growth accelerated, but rising AI spending and negative free cash flow remain central risks

Amazon posted its second-quarter earnings after the closing bell on Thursday. Cloud growth vastly exceeded expectations.

Amazon shares jump as AWS revenue and margins accelerate faster than rising AI capex, signaling stronger cloud demand and improving returns on Amazon’s heavy investments.

Revenue for the quarter reached $201 billion, above expectations of $197 billion, and up 20% on the year.

Sales in the e-commerce and cloud computing company’s Amazon Web Services jumped 37% to $42.2 billion, nearly $2 billion above estimates. Sales growth in the cloud services division is a key metric for Amazon and the broader AI trade, as it serves as an indicator of demand from other companies that run AI products.

Amazon.com, Inc.'s (AMZN) data center capex is beginning to yield returns. Read why this may challenge market skepticism about AI infrastructure investments.

Amazon's market value crossed the $3 trillion mark for the first time on Monday after investors rewarded the company for a stronger-than-expected earnings report that reinforced the view that artificial intelligence spending is beginning to generate meaningful returns through its cloud computing business.

Amazon.com Inc surpassed US$3 trillion in market value for the first time, becoming only the fifth company to ever reach the milestone.