Amazon shares rose sharply in after-hours trading after the company reported stronger-than-expected growth in its cloud division, Amazon Web Services, buoyed by demand tied to artificial intelligence.

The results pointed to a faster pace of expansion in AWS than Wall Street had anticipated, easing investor concerns about whether Amazon’s cloud business was losing momentum in a crowded market. The company’s latest report suggested that enterprise spending on AI infrastructure and services remains a key driver of cloud revenue.

Amazon’s performance also highlighted how closely investors are watching the company’s ability to translate its heavy AI investments into measurable growth. As competition intensifies across cloud computing, the strength of AWS remains central to Amazon’s overall earnings outlook and market valuation.

The stock reaction reflected renewed confidence that Amazon can benefit from the AI buildout while maintaining its position as one of the dominant players in cloud services.