Amazon Surge Lifts Tech Sentiment After Strong Cloud Earnings

Amazon.com Inc. shares surged roughly 14% in early trading Friday, pushing the Nasdaq Composite higher as the e-commerce and cloud giant delivered quarterly results that reassured investors about the payoff from soaring artificial intelligence investments.

Shares of Amazon climbed to $269.46 shortly after the opening bell, according to NDTV Profit. The jump came after the company reported its strongest quarterly revenue growth in more than four years, according to The Times of India. Net income rose to $35.77 billion, or $4.81 per share, from $27.23 billion, or $3.65 per share, a year earlier — a figure that appeared in both sources.

The rally was fueled by Amazon Web Services (AWS), whose cloud revenue beat analyst expectations. While the two sources gave differing precise figures, both reported that AWS revenue exceeded consensus estimates. NDTV Profit added that AWS’s cloud-unit growth was its fastest since 2021, and that the division’s AI business and chips generated over $25 billion in annualized revenue, more than double last year.

“Amazon showed us, without a shadow of a doubt, that the web-services or AI side of the business is driving growth for the company,” Adam Sarhan, chief executive of 50 Park Investments, told Reuters, as quoted in The Times of India. “Investors are able to look past the free-cash-flow decline because it is one component. If growth continues, it will make up for that shortfall.”

**Market Reaction and Broader Tech Moves**

At 9:47 a.m. ET, the Nasdaq Composite had advanced 86.20 points, or 0.34%, to 25,208.37, while the S&P 500 rose 0.12% to 7,446.54 and the Dow Jones Industrial Average added 0.16% to 52,290.32, according to The Times of India. The S&P 500 consumer discretionary sector jumped 5.2%, led by Amazon’s gains.

However, gains were tempered later in the session. NDTV Profit reported that Wall Street indices erased early advances as the yield on 10-year Treasuries rose six basis points to 4.73%. The S&P 500 turned down 0.4%, the Nasdaq fell 0.27%, and the Dow slipped 0.34% by mid-morning.

Other tech stocks moved in sympathy. Microsoft shares rose 1.8% after its own record one-day surge in the prior session, while Alphabet and Meta each gained more than 2%, The Times of India reported. Semiconductor names also strengthened: Nvidia climbed 1.3% and Micron Technology added 1.6%. Apple was the outlier, falling 9.8% after cautioning about supply constraints.

**JPMorgan Lifts Target on AI Optimism**

JPMorgan reiterated a “buy” rating on Amazon and raised its price target to $365 from $330, implying nearly 40% upside from current levels, according to NDTV Profit. The brokerage cited expanding margins, accelerating AI monetization, and resilient cash flows.

NDTV Profit reported that JPMorgan analysts highlighted Amazon’s strong operating cash flow as providing financial flexibility to continue heavy investment in AI infrastructure. The brokerage also noted growing adoption of Amazon’s proprietary AI chips, including Trainium 2 and Inferentia, and a strategic partnership with Anthropic as catalysts for higher enterprise AI adoption on AWS.

**Uncertainty Over Rates Lingers**

The week had been viewed as a key test for technology stocks. A steep selloff in AI-related names during July had left the S&P 500 and Nasdaq on track to end the month in negative territory despite late-week gains, The Times of India reported.

Fresh uncertainty over interest rates also weighed on sentiment. The Federal Reserve left its benchmark rate unchanged, and comments from Chair Kevin Warsh, combined with a benign inflation report, pushed the probability of rates staying unchanged in September to 35%, up from about 18% a week earlier, according to CME’s FedWatch tool as cited by The Times of India.

While Amazon’s results provided a powerful tailwind for tech sentiment, the broader market remained cautious amid rising bond yields and lingering questions about the pace of AI-related returns.