Amazon Earnings exceeded Wall Street expectations after the technology giant reported strong second-quarter results driven by rapid growth in its cloud computing, artificial intelligence, and semiconductor businesses. The company posted more than $200 billion in revenue, marking a 20% increase from the same period last year.

Amazon said its cloud division, Amazon Web Services (AWS), generated $42.2 billion in revenue during the quarter, representing a 37% year-on-year increase. The stronger-than-expected results boosted investor confidence, sending the company’s shares up more than 6% in after-hours trading.

More than 100 words into the report, Amazon Earnings reflected the company’s growing success in artificial intelligence. Amazon said both its AI cloud services and custom chip businesses recorded triple-digit growth. Each division also surpassed an annual revenue run rate of $25 billion, highlighting rising demand for AI infrastructure and enterprise computing solutions.

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The results strengthen Amazon’s argument that its heavy investments in artificial intelligence are beginning to deliver meaningful financial returns. Like other major technology companies, Amazon has significantly expanded spending on AI development, cloud infrastructure, and advanced computing platforms.

Company executives are expected to provide additional details during an earnings call with analysts later on Thursday, where investors will closely monitor updates on AI spending, future growth projections, and capital investments.

The latest earnings also underscored the widening performance gap among leading technology firms. While Amazon delivered stronger-than-expected results, Meta Platforms faced investor disappointment after reporting earnings that fell short of Wall Street forecasts. Meta’s shares dropped as much as 12% in after-hours trading before closing down another 8% on Thursday.

Meanwhile, Microsoft recorded one of the strongest market reactions of the week. Its shares surged more than 15% after the company reported quarterly revenue and profit that exceeded analyst expectations.

Microsoft also announced that its AI-powered productivity assistant, Copilot, has grown to more than 30 million paid users, further demonstrating the accelerating commercial adoption of artificial intelligence across the technology industry.

The latest earnings reports from Amazon and Microsoft reinforce growing investor confidence that large-scale AI investments are beginning to generate significant revenue growth, even as competition among global technology companies continues to intensify.