Stocks
October 30, 2026
Reddit Stock Falls 18% Despite 53% Revenue Growth, How Does It Compare With Pinterest?
- Amazon stock fell about 7% after earnings as annual free cash outflow reached $42.4 billion despite strong AWS growth
- Amazon plans to start selling Trainium AI chips outside AWS in late 2027
- Intel stock plunged as much as 23% after hours as its weaker outlook overshadowed 78% growth in data center and AI revenue
Amazon stock fell about 7% after Thursday’s earnings, while Intel stock dropped as much as 23% in extended trading. Both companies reported strong growth in businesses serving AI customers, but investors had other numbers to consider. Amazon’s expansion was consuming cash, and Intel warned that PC demand would remain weak into next year. Amid the selling, Andy Jassy outlined a change to Amazon’s chip business that will take another year to arrive.
Also Read: Bitcoin Crashes Below $77K as Binance Faces $6.3B Security Breach, $3B in Crypto Frozen
Amazon’s AI Spending Leaves a $42.4 Billion Cash Shortfall
The Amazon earnings report revealed revenue rising 12% to $201.9 billion, with earnings of $1.89 per share. Both fell short of Wall Street expectations. But operating income climbed to $28.1 billion, producing the company’s highest operating margin, 13.9%.
The numbers are harder to overlook. Amazon generated $168.3 billion in operating cash over the trailing 12 months, yet infrastructure purchases pushed free cash flow to negative $42.4 billion. A year earlier, that figure was positive $14.8 billion. Amazon attributed the increased investment primarily to AI.
There is more spending ahead. Jassy maintained an approximately $220 billion cash capital expenditure plan for 2026 and said next year’s bill would be meaningfully higher.
Trainium Chip Sales Outside AWS Start in Late 2027
Amazon plans to begin selling Trainium chips for use outside AWS in late 2027, Jassy said on the earnings call. He expects external chip sales to become a “very significant business.”
The choice involves a trade-off. Selling a chip brings revenue when it ships. Keeping it inside AWS allows Amazon to earn revenue over five to six years, generating more total revenue and free cash flow over its working life, Jassy said. AWS revenue grew 39.3% to $46 billion in Q3. Management expects growth above 40% in both 2027 and 2028, although those forecasts depend on Amazon delivering the capacity customers need.
Also Read: HYPE Price Jumps 8% as NYSE Owner ICE Backs Trade.xyz’s US Perpetuals Plan
Intel’s Data Center Surge Meets a Weaker PC Outlook
Intel’s results exposed a different problem. Revenue increased 21% to $16.5 billion, helped by Data Center and AI sales jumping 78% to $7.3 billion. Its client computing business declined 5% to $8.1 billion.
Intel forecast fourth-quarter revenue of $15 billion–$16 billion. CFO David Zinsner warned that PC weakness could persist through at least the first half of 2027, while manufacturing constraints limited its ability to supply growing server demand.
Amazon vs Intel Stock: How a $2,000 Investment Compares
Intel entered earnings with a much larger gain this year. MarketCapOf’s comparison for January 1–October 30 shows a $2,000 investment in Intel worth $4,654.13, a 132.71% return. The same investment in Amazon stock reached $2,164.81, up 8.24%.
Amazon’s chip announcement offers a future revenue stream. Intel’s outlook shows how much near-term demand and production problems can still matter to investors, even when AI-related sales are climbing.
Also Read: Ethereum Price Risks $2,000 as Whale Holdings Fall and ETF Outflows Continue
