Amazon beats Q1 estimates with strong AWS growth and AI chip sales.

Amazon reported a strong Q1 performance, surpassing earnings and revenue expectations driven by 28% growth in AWS revenue to $37.6 billion and expanding operating margins. The company’s in-house AI chip business is rapidly growing, reaching a $20 billion revenue run-rate, positioning Amazon for leadership in the Data Center market. Despite the positive results, Amazon’s stock rose less than 1%, as future risks include potential slowdowns in enterprise Cloud demand. The company trades at a forward P/E of 27.0, supported by AWS momentum and chip demand.