Amazon Shares Soar as AI Boom Drives AWS Cloud Growth and Record Investor Optimism

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Amazon shares surged more than 11% in early trading on Friday after its cloud computing arm, Amazon Web Services (AWS), reported strong growth and a bullish sales outlook that reassured investors of its position in the AI race.

AWS revenue rose 20% in the third quarter, reaching $33 billion — more than double Google Cloud’s $15.16 billion — cementing Amazon’s dominance in the cloud market. While Microsoft Azure’s 40% growth outpaced AWS in percentage terms, analysts said the scale of AWS’s business made its rebound even more significant.

“There were concerns about AWS losing market share to Microsoft and Google,” said Jed Ellerbroek of Argent Capital. “But now AWS is clearly back on track — investors expected this turnaround next year, and it’s arrived early.”

The strong quarter helped Amazon’s stock outperform rivals Apple and Tesla in year-to-date gains, lifting it out of the bottom spot among the “Magnificent Seven” tech giants. CEO Andy Jassy said AWS is “growing at a pace we haven’t seen since 2022,” driven by soaring demand for AI and infrastructure services.

Beyond cloud computing, Amazon’s retail and advertising segments also delivered impressive results. Retail sales grew 11% year-over-year, while ad revenue surged 24% to $17.7 billion, boosted by expanded placements across Echo devices and grocery stores. Following the results, at least 23 brokerages raised their price targets for Amazon, reflecting renewed confidence in the company’s long-term AI strategy.

Apple Shares Rise as Strong Holiday iPhone Sales Forecast Eases Supply Concerns

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Apple shares climbed about 2% in premarket trading on Friday after the company’s upbeat holiday quarter forecast reassured investors that strong demand for the iPhone 17 lineup is driving a sales rebound despite ongoing supply delays in China.

The company’s latest projections, announced earlier this week, helped ease concerns about production bottlenecks that had weighed on fourth-quarter performance. The optimism pushed Apple’s market capitalization back above $4 trillion, placing it alongside tech giants Nvidia and Microsoft in the exclusive multi-trillion-dollar club.

Investors also took comfort in Apple’s measured approach to integrating artificial intelligence, with analysts noting that the company’s strategy emphasizes precision over speed. “When you’re really big like Apple, you don’t have to move fast — sometimes you just have to get it right eventually,” said Eric Clark, Chief Investment Officer at Accuvest.

Despite its rally, Apple remains one of the weaker performers among the “Magnificent Seven” group of mega-cap tech stocks this year, trailing Nvidia and Microsoft but showing resilience amid global supply headwinds.

According to LSEG data, Apple’s stock trades at 33.4 times analysts’ earnings forecasts, above Microsoft’s 31.7 and Meta’s 22.3, reflecting investor confidence in the company’s long-term innovation and profitability.

Nexperia China Says It Has Ample Inventories After Dutch Parent Halts Wafer Supplies

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Nexperia’s China division said on Sunday it has built up sufficient inventories and secured its supply chain after the Dutch parent company suspended wafer shipments to its Chinese assembly facilities. The unit assured customers that production and deliveries would continue as planned despite the disruption.

The Dutch chipmaker halted wafer supplies on October 26, citing what it called the Chinese unit’s failure to comply with agreed payment terms. Nexperia China, however, rejected the accusation, calling the move “unilateral” and “extremely irresponsible,” and describing the payment-related claims as “misleading and highly deceptive.”

The dispute follows months of political tension after Dutch authorities took control of Nexperia from its Chinese owner, Wingtech, in September over national security concerns about potential technology transfers. In response, Beijing temporarily blocked the company’s products from being exported.

Nexperia China said it has “proactively initiated contingency plans” and is working to qualify new wafer suppliers, adding that existing inventories would sustain production “through year-end and beyond.” The company expects to meet full customer demand starting next year.

Nexperia produces inexpensive but essential power-control chips — such as transistors and diodes — widely used across consumer electronics and the automotive industry. Automakers have warned that any prolonged supply disruption could affect production.