Amazon’s 2026 capital expenditures are now guided at $220 billion following the July 30 Q2 update, up from the initial $200 billion February target, driven by elevated memory-chip costs and sustained AI demand that continues to outstrip available capacity. Trailing twelve-month cash capex reached roughly $173 billion by mid-year, pushing free cash flow negative as the company accelerates data-center, networking, and custom-silicon deployments that represent the bulk of spending. Strong AWS revenue growth of 37 percent year-over-year and AI/chips businesses each exceeding $25 billion annualized run rates underpin management’s willingness to raise guidance, yet rising component prices and the lag between deployment and monetization keep pressure on margins and returns on invested capital. The next meaningful update is expected with Q3 results in late October, where further revisions could hinge on memory pricing trends and new customer backlog.