Amazon shares plunge amid concerns over soaring AI costs

Amazon shares traded significantly lower after the company signaled plans for aggressive spending on artificial intelligence, according to media reports.

The stock dropped almost 5% by market close and posted another decline of 7% in the post-market session.

Amazon announced on Thursday massive capital expenditures of around $200 billion for 2026 in the AI field.

Investors worried that the firm's heavy investment in AI infrastructure would weigh on near-term profit margins.

The tech sell-off also dragged down other major industry players following similar spending announcements.

The decline marked one of the steepest single-day drops for the company in recent months.

Stabil.Az