Amazon Shares Up 1.6% on CEO's AI Outlook for AWS

Amazon.com Inc. shares climbed 1.6 percent during trading on Tuesday, closing at 215.20 after reaching a high of 215.70, as positive comments from Chief Executive Officer Andy Jassy on the potential of artificial intelligence fueled investor optimism. The stock's advance came amid a session volume of 44.9 million shares, down 14 percent from the average, following a previous close of 211.74.

Jassy's remarks, shared with employees, highlighted AI's role in expanding Amazon Web Services, the company's cloud computing arm. He projected AWS could achieve annual revenue of about 600 billion by 2036, doubling an earlier estimate of 300 billion and underscoring a stronger long-term growth path for the segment. This outlook aligns with recent developments, including a reported agreement allowing OpenAI to distribute its AI models to U.S. federal agencies through AWS for both classified and unclassified work. Such partnerships are expected to boost high-margin enterprise and government AI workloads.

The stock's momentum also reflected broader strategic moves. Amazon introduced one-hour and three-hour paid delivery options in hundreds of U.S. cities, aiming to enhance competitiveness...