Amazon’s 2026 capital expenditure guidance of approximately $220 billion, raised from $200 billion during the Q2 2026 earnings call in July, reflects elevated spending on AWS and generative AI infrastructure, including data centers, servers, networking equipment, and custom silicon. The $20 billion increase stemmed primarily from higher memory chip costs rather than expanded capacity plans, even as management noted insufficient supply to meet 2026 demand and substantial pre-bookings extending into 2027 and 2028. AWS revenue grew 36.7% year-over-year to $42.2 billion in Q2 with a $496 billion backlog, supporting the buildout despite trailing twelve-month free cash flow turning negative at roughly -$7.6 billion amid capex intensity near 22% of revenue. Q3 2026 results, expected later this month, represent the next potential catalyst for revisions.