In 2026, one of the dominant investment themes is concern about how much large tech companies like Amazon (AMZN -0.19%) are spending on building artificial intelligence (AI) infrastructure. That concern is reflected in the Amazon stock price; as of this writing, shares are up less than 2% so far this year.
Amazon’s recent bond sale and capital expenditure plans, however, suggest that the company has a far different concern than most of the market.
Andy Jassy, Amazon (AMZN), CEO. Image source: Amazon.
Ballooning spending
In early July, Amazon sold $25 billion worth of bonds to continue fueling the build-out of AI infrastructure. In addition, its capital expenditures for 2026 are projected at $200 billion, a significant increase from the $131 billion spent in 2025. As a point of comparison, Meta Platforms expects its capital expenditures to fall between $125 billion and $145 billion, while Alphabet plans to spend between $195 billion and $205 billion.
The worry is that the spending may take years to yield any meaningful return. The more extreme concern is that AI will become a money pit with almost no return, and that large tech companies have ultimately wasted years of time, resources, and capital on it.
That said, Amazon clearly has a different fear.
Today’s Change
(-0.19%) $-0.44
Current Price
$230.95
Key Data Points
Market Cap
Day’s Range
$228.11 – $233.23
52wk Range
$196.00 – $278.56
Volume
1.4M
Avg Vol
48.6M
Gross Margin
50.60%
Missing out
In tech, history is littered with missed opportunities. One classic example is when Blockbuster could have bought Netflix in 2000 for $50 million. Blockbuster went on to file for bankruptcy in 2010, while Netflix today is worth more than $291 billion.
That fear of missing out or making one critical mistake, like not investing enough in building AI infrastructure, can help explain why Amazon is spending so much. It also explains why there may seem to be a disconnect: Investors worry it is spending too much, while Amazon fears it’s not spending enough.
In his letter to shareholders in April, Amazon CEO Andy Jassy addressed the spending head-on:
AI will reinvent every customer experience, and there will be a slew of new experiences only possible because of AI. I’ve followed the public debate on whether this technology is overhyped, whether we’re in ‘a bubble,’ and if the margins and ROIC will be appealing. My strong conviction, at least for Amazon, is that the answers are no, no, and yes.
Jassy went on to say, “AI is a once-in-a-lifetime opportunity where the current growth is unprecedented and the future growth even bigger.”
Jassy could be right, as this may still just be the early stages before the full AI growth story takes shape, and Amazon clearly doesn’t want to miss out. The trade-off for having the patience to let those investments pay off is that Amazon may lag the S&P 500 (^GSPC +0.21%), as it has this year.