Why Amazon, Alphabet, and Other Tech Stocks Popped Today
Yahoo Finance ·
Shares of Amazon.com ( AMZN +3.23% ) and Alphabet ( GOOGL +4.79% ) ( GOOG +4.94% ) climbed on Monday, following bullish developments in the cloud industry. Reports of price increases at Amazon Web Services (AWS) were taken as an indication of strong demand for cloud computing services. Amazon is reportedly raising prices by up to 20% for access to advanced graphics processing units (GPUs) designed by the likes of Nvidia . AWS is one of Amazon's highest-margin business lines and a key driver of its earnings growth. Price hikes should help Amazon offset the surging costs of memory chips and other artificial intelligence ( AI ) infrastructure, thereby preserving its enviable profit margins. Price increases also suggest that demand for AI and other cloud workloads could be even higher than investors expect.
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