Amazon shares rose more than 1% on Tuesday, ending a nine-day losing streak that had erased over $450 billion in market value.

The drop followed concerns over the company’s $200 billion capital expenditure plan for 2026, a nearly 60% increase from last year, mostly aimed at AI-related infrastructure like data centers, chips, and networking.

Other tech giants, including Alphabet, Microsoft, and Meta, are also ramping up spending, with total AI-related capex expected to reach $700 billion this year.

Amazon CEO Andy Jassy and AWS CEO Matt Garman defended the investment, highlighting its potential to drive AI growth and cloud revenue, CNBC has reported.

Analysts caution that investors will need to see tangible returns before fully regaining confidence, though some remain bullish on AWS’s expansion and long-term growth prospects.