Amazon’s 2026 capital expenditure outlook centers on roughly $220 billion in cash capex, raised from an initial $200 billion target during the July 2026 Q2 earnings release due to higher memory-chip costs rather than expanded capacity plans. The increase reflects sustained AI infrastructure demand for AWS data centers, servers, and custom silicon, with management noting that even this level leaves insufficient capacity to meet 2026 demand and that similar dynamics are expected in 2027. Strong AWS revenue growth of 36.7% year-over-year and a $496 billion backlog underscore the investment case, though elevated spending has driven trailing twelve-month free cash flow negative. Traders will monitor Q3 2026 results for any further guidance revisions, operating-income trends, and signs of component-cost stabilization or demand shifts.