[Zhongtai Electronics | Overseas Watch] Amazon Cloud Business Beats, Raises Full-Year Capex Guidance

English summary

Amazon rose +9% after this morning's results, driving the hardware chain to continue surging. After hours: Marvell/SanDisk/Micron/TSMC +6%/5%/3%/2% respectively. Cloud business big beat! Enterprise AI drives high growth. CY26Q2, AWS/Google Cloud/Microsoft Azure achieved YoY revenue growth of +37%/+82%/+43%, all exceeding market expectations and at the fastest historical growth rates. Amazon said AWS could reach a trillion-dollar annual revenue in the future; referencing this quarter's AWS revenue of $42.2bn, there is nearly 10x growth space. Cloud backlog continues to grow rapidly, supply-demand gap intensifies. End of 26Q2, AWS backlog $496bn, QoQ +36%, YoY +154%; the three major cloud providers' total backlog reaches $1.7 trillion, YoY +152%. Backlog growth significantly exceeds cloud revenue growth, intensifying supply-demand imbalance. More than half is expected to be recognized within 24 months, raising visibility for subsequent growth. ...