Amazon’s (AMZN) shares jumped about 5% on Thursday afternoon after the e-commerce heavyweight said it has accelerated its data center investments in Mississippi to $25 billion. The gains also rode on the back of an announcement by CEO Andy Jassy that the tech giant may start selling its own AI chips to outside customers.
Claim 30% Off TipRanks
New trading tool for AMZN bullsAmazon Ramps Up Spending in Mississippi
Amazon has been doubling down on its AI infrastructure buildout in recent years, with Mississippi emerging as one of its key focus states. In January 2024, the company announced plans to inject $10 billion into the construction of two new data center complexes in Madison County, Mississippi.
The Seattle, Washington-based company followed this up last November by committing $3 billion to build a new such facility in Warren County in the same state. Now, Amazon has further doubled down on these investments in Mississippi.
“Amazon’s planned expansion includes an additional $11 billion investment in Madison County and a $1 billion investment in Hinds County, where we are transforming the former Delphi manufacturing plant into a cutting-edge data center facility,” the tech giant noted in a statement.
Amazon to Pump $200B into AI Buildout in 2026
Lately, Amazon has also pledged a $20 billion investment to build two new data centers in Pennsylvania, U.S., and a $4.4 billion capital commitment for similar facilities in New Zealand.
Although massive spending on AI infrastructure buildout is putting pressure on Big Tech’s cash flow — a factor that contributed to the recent selloff in Magnificent Seven stocks — Amazon continues to bank on AI and plans to spend about $200 billion this year to expand its infrastructural base.
Is Amazon a Buy or Sell Right Now?
On Wall Street, Amazon’s shares continue to enjoy a Strong Buy consensus rating from analysts. This is based on 43 Buys and three Holds assigned by 46 analysts over the past three months.
In addition, the average AMZN price target of $284.34 implies about 23% upside from current trading levels.
