Amazon's cloud business AWS posted second-quarter revenue of $42.23 billion, marking its highest growth rate since 2021. Revenue rose about 37 percent from a year earlier and topped the market forecast of $40.54 billion.

AWS growth also stood out compared with 28 percent in the first quarter. Amazon said AWS's artificial intelligence business and chip business each surpassed $25 billion in annualised revenue, and both grew more than twofold from last year.

AWS also showed strength in profitability. AWS second-quarter operating profit was $16.62 billion, well above the market forecast of $13.62 billion. The operating margin was 36.8 percent. About 61 percent of Amazon's total operating profit came from AWS.

Amazon also increased data centre investment to meet demand for AI chips. Second-quarter capital expenditure rose 68 percent to $54.21 billion, exceeding the market forecast of $49.35 billion.

AWS said it would begin hosting OpenAI models in the second quarter, and Meta agreed to use hundreds of thousands of AWS Graviton chips under a three-year contract.

Microsoft said revenue from Azure and other cloud services rose to 43 percent this quarter from 40 percent in the previous quarter, and revenue over the past 12 months exceeded $100 billion. Alphabet also said last week that Google Cloud quarterly revenue rose 82 percent to about $25 billion.