Amazon Web Services (AWS) reported a 28% year-over-year revenue increase in the first quarter of 2026, surpassing analysts' expectations.
The cloud computing division, a key driver of Amazon's business, generated $37.59 billion in revenue, up from $29.27 billion in the same period last year.
The unit now accounts for more than 20% of Amazon's total revenue, signaling its growing role in the company's financial success.
The growth is attributed to increased investments in artificial intelligence and strategic partnerships, including a closer collaboration with OpenAI and continued support for Anthropic.
The performance of AWS has significant implications for the semiconductor industry, as cloud infrastructure demand often drives chip sales.
The unit now accounts for more than 20% of Amazon's total revenue, signaling its growing role in the company's financial success.
This development could influence investor sentiment toward cloud-related stocks and semiconductor firms that supply hardware for cloud computing.