Wells Fargo (WFC) Rises 2.9% on Positive Market Sentiment

On April 23, 2025, Wells Fargo's stock rose by 2.9% in pre-market trading, indicating a positive market sentiment towards the company's recent developments and strategic moves.

Wells Fargo analysts have reported that Amazon has paused negotiations for leasing some of its cloud division's data centers, particularly in overseas markets. This move suggests a potential slowdown in large-scale data center leasing business in the short term. Earlier this year, Microsoft was also reported to have canceled data center leasing agreements multiple times. The analysts revealed that they received this information from multiple industry sources over the weekend. Amazon Web Services (AWS) has reportedly paused some co-location leasing negotiations, with international projects being particularly affected. The scale of Amazon's pause in leasing negotiations is currently unknown. This situation is similar to recent developments at Microsoft, where both companies have been scaling back on some new projects but have not canceled any existing agreements. Co-location refers to multiple companies sharing the construction and use of data center facilities to split the high costs of infrastructure.

Analysts suggest that Amazon's latest actions may indicate that the company is reassessing its substantial investments in AI infrastructure due to increasing global economic uncertainty. Amazon had initially planned to invest tens of billions of dollars in AI infrastructure, including expensive NVIDIA chips. Earlier this month, Amazon CEO Andy Jassy stated that the company would not reduce its investments in data center construction. However, the latest news about Amazon's data centers further validates external concerns that the market demand for AI infrastructure may be cooling as companies explore how to effectively use AI technology to save time and costs. AWS has not yet responded to these latest developments.