UBS Raises TSMC Price Target to T$3,400 on Strong AI Chip Demand Outlook 
US Egg Producers Settle Price Manipulation Probe, Agree to Pay $3.3 Million and Donate 53 Million Eggs 
Kioxia Targets U.S. Listing as AI Chip Boom Accelerates 
Lenovo Shares Slide as AI-Driven Memory Demand Signals Higher DRAM and NAND Prices 
OpenAI IPO Delay Weighs on SoftBank Shares as AI Valuation Concerns Grow 
Apple Challenges India Antitrust Probe, Says CCI Copied Rivals’ Claims in App Store Case 
Trump Urges Gasoline Retailers to Cut Prices to $2.50 Per Gallon, Warns of Legal Action 
Australia Plans Higher Fines for Social Media Firms Failing to Block Underage Users 
Super Micro Shares Slide After Taiwan Raids Over Alleged Nvidia AI Chip Smuggling Probe 
The government is ‘doubling down’ on its social media ban. But bigger penalties for platforms aren’t enough 
Amazon Prime Day 2026 Sales Top $26.4 Billion as Shoppers Chase Discounts Amid Inflation 
Johns Hopkins University Lays Off 110 Employees as Federal Research Funding Declines 
Samsung, SK Hynix to Unveil $1.3 Trillion AI and Semiconductor Investment Plan 
Baige Online Shares Soar 333% in Hong Kong IPO Debut as AI Insurance Demand Lifts Chinese Listings 
Apple Supplier Stocks Slide as Samsung, SK Hynix Lead Selloff After Apple Price Hikes 
Italy Investigates Microsoft Over Microsoft 365 AI Subscription Price Hike 
Europe Heatwave Creates Growth Opportunity for Carrier, Trane, and Johnson Controls, Citi Says 
Amazon (AMZN) shares slipped 2.6% in after-hours trading on Wednesday, even after the company delivered record-breaking quarterly earnings that exceeded Wall Street expectations. The decline reflects investor concerns over Amazon’s aggressive infrastructure spending, particularly in artificial intelligence and cloud computing.
The tech giant reported earnings per share of $2.78, significantly beating the analyst consensus of $1.63. Revenue reached $181.5 billion, also surpassing forecasts of $177.13 billion. A key highlight was Amazon Web Services (AWS), which posted 28% growth—its fastest pace in over three years—signaling renewed momentum in the cloud computing segment. CEO Andy Jassy emphasized that AWS growth, alongside a rapidly expanding chip business and strong advertising revenue exceeding $70 billion annually, continues to drive the company’s performance.
Despite these impressive results, investors focused on Amazon’s declining free cash flow, which dropped to $1.2 billion over the trailing twelve months. This decrease was largely driven by a massive $59.3 billion increase in capital expenditures, particularly in property and equipment. In the first quarter alone, spending surged 77% year-over-year to $44.2 billion, reflecting Amazon’s heavy investment in AI infrastructure and proprietary silicon.
Analysts noted that Amazon’s long-term capital expenditure plan could reach $200 billion by fiscal year 2026, fueled by growing demand for AI workloads and partnerships involving large-scale computing capacity. While this spending strategy positions Amazon as a leader in the AI race, it also raises concerns about near-term profitability and cash flow pressure.
On the positive side, Amazon’s core retail business remains strong, with North America sales rising 12% to $104.1 billion and operating margins improving to 7.9%. The company also issued optimistic second-quarter guidance, projecting revenue between $194 billion and $199 billion, above analyst expectations.
Although Amazon’s earnings showcase strong growth across AWS, advertising, and retail, the stock’s muted reaction highlights investor caution around the capital-intensive nature of AI expansion.
