Descriptions:
Bloomberg Tech interviews a Mizuho analyst to break down Amazon’s latest earnings report and what it signals for the company’s AI trajectory. The headline number is AWS revenue growth accelerating to 37% year-over-year, which the analyst calls a clear sign that AI is materially improving Amazon’s core cloud business rather than just adding cost.
The more striking disclosure is Amazon’s custom silicon business — Trainium and Inferentia chips — reaching a $25 billion annual revenue run rate. The analyst explains the dual advantage this creates: Amazon sidesteps Nvidia’s supply constraints while offering cloud customers compute at lower cost, which is showing up in expanding operating margins even as capital expenditure intensifies across the industry. The conversation also highlights an underreported data point from Amazon’s call — that Alexa Plus users show higher Prime membership conversion and larger shopping basket sizes, suggesting consumer-facing AI is quietly driving e-commerce flywheel effects.
The second half of the interview addresses Apple’s 9% single-day drop following Tim Cook’s final earnings call, attributed to a services revenue miss and an admission that Apple miscalculated component orders for the iPhone 18 launch cycle. The analyst is cautious on Apple into the new product cycle, noting that the incoming CEO is a product executive rather than a supply chain specialist — a potential vulnerability heading into a launch that depends heavily on component availability.
📺 Source: Bloomberg Tech · Published July 31, 2026
🏷️ Format: Interview
