Amazon's $11.19B Trading Volume Ranks 8th as Stock Surges 12% on $38B OpenAI Cloud Pact and AWS Momentum

Market Snapshot

On November 7, 2025, Amazon (AMZN) recorded a trading volume of $11.19 billion, ranking eighth among U.S. equities for the day. The stock closed with a 0.56% gain, reflecting renewed investor confidence in its core operations. This performance follows a broader four-day rally of 12%, driven by a $38 billion cloud services agreement with OpenAI and strong quarterly growth in Amazon Web Services (AWS). Despite the recent rebound, Amazon’s annual stock performance remains below major indices such as the S&P 500 and Nasdaq 100, though analysts suggest the underperformance may be temporary given AWS’s resurgence.

Key Drivers

Amazon’s recent stock surge is primarily attributed to a strategic $38 billion multi-year contract with OpenAI, marking a pivotal win for its cloud computing division, AWS. The deal, which grants OpenAI access to hundreds of thousands of NVIDIA GPUs via AWS infrastructure, underscores AWS’s leadership in large-scale AI processing. This partnership not only validates AWS’s technical capabilities but also positions Amazon to secure a significant share of the rapidly expanding AI infrastructure market. The agreement, set to operationalize by late 2026, is expected to boost AWS’s revenue growth and reinforce its competitive standing against rivals like Microsoft and Google.

The timing of the OpenAI deal is critical for Amazon, as it follows AWS’s fastest quarterly growth since 2022. In Q3 2025, AWS reported a 20% year-over-year revenue increase to $33 billion, addressing investor concerns about its cloud business lagging behind competitors. The deal’s long-term implications are further amplified by AWS’s dual AI chip strategy, which caters to diverse client needs and enhances profitability. Analysts at Bank of America and Quilter Cheviot highlight that this contract could increase AWS’s backlog by up to 20% in Q4 2025, providing a tangible path for Amazon to recoup its substantial AI-related capital expenditures.

While the stock’s valuation remains below historical averages, current metrics suggest potential for re-rating. Amazon’s price-to-earnings ratio of 27x is significantly lower than its decade-long average of 47x, indicating undervaluation relative to its growth trajectory. The company’s aggressive $125 billion capital expenditure plan for 2025 and projected 2026 increases further signal management’s confidence in converting infrastructure investments into sustainable profits. Additionally, AWS’s 35% operating margins, despite contributing only 17% of Amazon’s revenue, highlight its role as the primary profit engine for the company.

The OpenAI partnership also diversifies Amazon’s AI ecosystem, complementing its existing $8 billion investment in Anthropic and the $11 billion Project Rainier data center. This multi-pronged approach mitigates single-provider risk while establishing AWS as the preferred infrastructure partner for leading AI innovators. Competitors such as Microsoft and Oracle have secured similar high-profile contracts, but Amazon’s ability to serve both OpenAI and Anthropic—two competing AI startups—demonstrates its neutrality and technical excellence. This strategic positioning aligns with the company’s broader efforts to dominate the generative AI market, which is projected to drive trillions in infrastructure spending over the next decade.

Despite recent gains, Amazon faces challenges in maintaining momentum. The company’s market share in cloud computing has dipped to 29%, down from 34% in 2022, as Microsoft and Google secure larger AI contracts. However, the OpenAI deal, coupled with AWS’s improved growth rates, suggests a reversal of this trend. Analysts anticipate further acceleration in 2026, with AWS revenue forecasts and earnings per share estimates rising in response to the contract. The stock’s 33.8% gain over the past six months, though trailing Alphabet and Oracle, reflects growing optimism about AWS’s ability to reclaim its market leadership.

Investor sentiment is further bolstered by Amazon’s operational efficiency and cost-cutting measures. CEO Andy Jassy has streamlined management layers and implemented an anonymous complaint line to identify inefficiencies, while recent layoffs of 14,000 corporate employees signal a focus on profitability. These actions, combined with AWS’s expanding client base and AI-driven innovations, position Amazon to capitalize on the multi-trillion-dollar AI opportunity. As the re:Invent conference in December approaches, market participants will closely watch for updates on AWS’s Trainium and Nova chips, which could serve as additional catalysts for the stock.

In summary, Amazon’s recent stock performance is driven by a combination of strategic AI partnerships, robust cloud growth, and a favorable valuation. While challenges remain in the competitive cloud landscape, the OpenAI deal and AWS’s resurgence provide a strong foundation for long-term value creation. Analysts and investors alike view Amazon as a key player in the next phase of the AI revolution, with its ability to deliver scalable infrastructure solutions likely to underpin continued investor confidence.