Amazon raised its 2026 capital expenditure guidance to $220 billion during its July 30 Q2 earnings release, up from the $200 billion announced in February, primarily due to elevated memory chip costs and sustained AI infrastructure demand that continues to exceed available capacity. AWS revenue grew 37% year-over-year to $42.2 billion, with AI services and custom silicon (Trainium/Graviton) driving much of the acceleration, while roughly 80% of planned spend targets data centers, networking, and semiconductors. This follows peers like Microsoft and Alphabet in signaling multi-hundred-billion-dollar AI buildouts, compressing near-term free cash flow—TTM purchases of property and equipment reached $173 billion—but management cited strong backlog commitments supporting long-term returns. Traders monitor Q3 results, expected in late October, for any further revisions amid ongoing supply constraints and macro rate sensitivity.