Amazon raised its 2026 capital expenditure guidance to $220 billion following Q2 results, up $20 billion from the prior $200 billion target, citing surging AWS demand—particularly AI workloads—and elevated memory chip costs. Trailing twelve-month purchases of property and equipment reached $169 billion, up 64% year over year, with roughly 80% directed toward AI infrastructure. This pace reflects AWS revenue growth of 37% in the quarter and persistent capacity shortages despite aggressive buildouts. The elevated spend is pressuring free cash flow, which turned negative on a trailing basis, while supporting long-term monetization of custom silicon and data centers. Q3 results and any further guidance revisions remain key near-term catalysts.