Amazon Already Knows What 2028 Looks Like: CEO Andy Jassy Says the Demand Is 'Striking' as AWS Races to Add Capacity

Amazon.com, Inc. (NASDAQ:AMZN) CEO Andy Jassy said the company is already seeing “striking” demand for 2028 as it continues expanding AI infrastructure to keep pace with customer demand.

AI Demand Already Extends Into 2028

Speaking on the company’s second-quarter earnings call Thursday, Jassy said the company expects AI-related capacity constraints to continue beyond next year despite increasing investments in infrastructure.

“Even at that amount, we will still not have enough capacity to meet all the demand we have in 2026,” Jassy said.

“I believe this dynamic will also be true in 2027, too. In fact, the demand we already have for 2028 is striking.”

Amazon Web Services reported second-quarter revenue of $42.2 billion, up 37% year over year and its fastest growth in 18 quarters.

The outlook also drew a bullish response from technology investor Shay Boloor, who said it reinforced his positive view on AI infrastructure plays Micron Technology Inc. (NASDAQ:MU), SK hynix Inc. (NASDAQ:SKHY) and SanDisk Corp. (NASDAQ:SNDK)

Enterprise AI Adoption Is Still Early

Jassy attributed the long runway for AI demand to enterprise customers that are only beginning to deploy AI at scale.

“Remember, enterprises are still very early in using inference at scale in their current production applications,” he said.

He added that about 85% of global IT spending remains on on-premises infrastructure, which he expects to shift to the cloud over the next 10 to 20 years, creating additional demand for AI infrastructure

Amazon Delivers Another Strong Quarter

Amazon reported second-quarter revenue of $200.61 billion, topping the $196.46 billion consensus estimate, while earnings came in at $5.75 per share, well above analysts’ expectations of $1.82 per share, according to Benzinga Pro.

The company raised its projected 2026 cash capital expenditures to about $220 billion from roughly $200 billion.

It expects third-quarter revenue of $197 billion to $202 billion and operating income of $22.5 billion to $26.5 billion.

Price Action: The stock closed 3.90% higher on Thursday at $235.50 and popped 9.55% in extended trading post the earnings announcement.

Benzinga edge rankings indicate AMZN has a Momentum score in the 23rd percentile and a Growth score in the 95th percentile.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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