Analyst reiterates Amazon Buy rating on $220B AI capex

The analyst points to recent financial performance to support the thesis, noting that AWS delivered 37% year-over-year revenue growth in Q2 with a 39.4% operating margin. This demonstrates that Amazon can maintain strong profitability even while reinvesting heavily in AI hardware and data centers. However, the analyst did not upgrade the rating to Strong Buy, citing remaining risks related to the credit quality of counterparties and the ultimate return on invested capital. The core argument is that the market may be underpricing the durability of this demand, creating a gap between current stock prices and fundamental economic reality.