Amazon's cloud service revenue reached US$27.5 billion, a year-on-year increase of 19.1%, in line with market expectations.AWS's growth rate has gradually rebounded from the low double digits at the beginning of 2023, showing the driving effect of generative AI demand on cloud computing.

Amazon CEO Andy Jassy said that Amazon's AI business has grown at a triple-digit rate, and its growth rate has surpassed the early AWS growth rate, reflecting the demand potential of generative AI.

Jassy emphasized that current semiconductor supply constraints are the main obstacle to meeting AI needs. For this reason, Amazon has developed home-made AI chips Trainium and Inferentia to support AI applications.Trainium's second-generation product will be launched in the near future and is expected to improve computing efficiency and meet high-end AI needs, giving Amazon a unique advantage in the face of competition from competitors Microsoft and Alphabet.

In terms of advertising, Amazon's advertising revenue increased 18.8% to US$14.3 billion, slightly higher than market expectations.As the e-commerce and content ecosystem continues to expand, Amazon's advertising profitability continues to increase, becoming one of the company's fastest-growing revenue segments, further strengthening Amazon's overall business layout.

Looking forward to the fourth quarter, Amazon's expected revenue is between US$181.5 billion and US$188.5 billion, with the median slightly lower than the market forecast of US$186.4 billion. However, investors are still confident in its growth momentum, reflecting the market's expectations for Amazon's deployment in the cloud and AI fields.Despite inflation and high interest rates, Amazon shares are still up 22% year-to-date.