Amazon Stock Rises 13% on AI and Cloud Growth
Amazon shares rise 13% on October 30, 2025, driven by strong AWS growth and AI investments, marking the best performance since 2022.
Amazon Stock Soars on Record Cloud Growth and AI Momentum
Amazon’s shares surged by more than 13% in extended trading on Thursday, October 30, 2025, marking the company’s best single-day performance since 2022. The rally was triggered by robust third-quarter earnings, with Amazon Web Services (AWS) delivering its strongest revenue growth in nearly three years and the company raising its capital expenditure forecast to $125 billion for the year. The stock’s momentum reflects a dramatic shift in investor sentiment, as the AI narrative around Amazon has turned decisively positive.
Record Cloud Growth Drives Market Value Surge
Amazon’s cloud division, AWS, reported a 20% year-over-year revenue increase for the third quarter, outpacing analyst expectations of 17.95%. This surge was fueled by relentless business spending on artificial intelligence infrastructure, as enterprises race to deploy AI-driven applications and services. CEO Andy Jassy highlighted that AWS is now growing at a pace not seen since 2022, underscoring the unit’s critical role in Amazon’s future.
- AWS revenue growth: 20% YoY (Q3 2025)
- Capital expenditures: $125 billion projected for 2025, up from $89.9 billion in the first nine months
- Market value increase: $330 billion in extended trading
The rally lifted Amazon’s market value by approximately $330 billion, a figure that would represent the largest one-day percentage gain for the company since 2015 if sustained in regular trading. The surge also pushed Amazon’s stock price to a new 52-week high of $242.52, up from a low of $161.38 earlier in the year.
AI Spending and Strategic Investments
Amazon’s aggressive investment in AI infrastructure is paying off. The company has allocated a significant portion of its capital expenditures to AI projects, including data centers, server capacity, and advanced computing technologies. CFO Brian Olsavsky confirmed that full-year capital expenditures would reach $125 billion, with even higher spending expected in 2026.
- AI-driven demand: Businesses are investing heavily in AI software development, driving demand for cloud services.
- Capacity expansion: Amazon is accelerating its capacity to meet the growing needs of AI and core infrastructure clients.
- Holiday season boost: The e-commerce division is gearing up for the critical holiday season, despite ongoing challenges in consumer confidence due to global trade uncertainty.
Market Reaction and Analyst Commentary
The market’s reaction to Amazon’s results was overwhelmingly positive. Analysts noted that the AI narrative has “flipped positive,” with investors now viewing Amazon as a leader in the AI infrastructure race. The company’s ability to outperform expectations in both cloud and retail segments has bolstered confidence in its long-term growth prospects.
- Stock price movement: Up 13% in extended trading, with a 52-week high of $242.52
- Volume: 94 million shares traded, with a significant increase in volume on the last trading day
- Analyst sentiment: Positive, with many upgrading their price targets for Amazon
Visuals and Key Figures
- Amazon logo:
- AWS data center:
- Andy Jassy, Amazon CEO:
- AI infrastructure visualization:
Industry Impact and Future Outlook
Amazon’s strong performance in the cloud and AI sectors is reshaping the competitive landscape. The company’s ability to capitalize on the AI boom has positioned it as a key player in the next wave of technological innovation. As businesses continue to invest in AI, Amazon’s cloud services are likely to remain in high demand, driving further growth and market expansion.
- Competitive advantage: Amazon’s scale and technological expertise give it a significant edge in the cloud and AI markets.
- Future outlook: Analysts expect continued strong performance, with potential for further stock price appreciation and market share gains.
Conclusion
Amazon’s stock surge on October 30, 2025, is a testament to the company’s strategic investments in AI and cloud infrastructure. The record-breaking performance in AWS, coupled with a positive shift in the AI narrative, has solidified Amazon’s position as a leader in the tech industry. As the company continues to expand its capacity and invest in cutting-edge technologies, investors can expect more robust growth and market leadership in the years to come.
