By Daniel Howley

Amazon (AMZN) reported its second quarter results after the bell on Thursday, beating expectations on the top and bottom lines, as its AWS AI and chip units both surpassed annual run rates of $25 billion.

Amazon stock jumped roughly 13% in premarket trading on Friday as investors assessed the news.

"AWS is booming, growing 36.7% year-over-year in Q2 — our fastest growth in 18 quarters — and our AI and Chips businesses each eclipsed run rates of more than $25 billion," Amazon CEO Andy Jassy said in a statement.

"In Stores, we again set record delivery speeds for Prime members in the first half of the year—over 40% more items delivered same-day or overnight, with Grocery and Everyday Essentials growing meaningfully faster than the rest of the business. And, Advertising had another strong quarter with 26% year-over-year growth. There's a lot to be excited about, and we have much more coming for customers in the second half of the year and beyond."

For the quarter, Amazon saw earnings per share (EPS) of $5.75 on revenue of $200.6 billion. Analysts were anticipating EPS of $1.82 on revenue of $197.01 billion.

The company saw EPS of $1.68 and revenue of $167.7 billion in the same period last year.

AWS generated $42.2 billion in sales in the quarter versus expectations of $40.5 billion in the quarter. North American net sales climbed to $116.1 billion.

Free cash flow, however, fell to -$7.6 billion, a 142% decline, as the company spends billions on AI.

Amazon's announcement comes after Microsoft (MSFT) reported strong earnings on Wednesday, sending the stock surging as much as 15% Thursday and breaking the record for the largest market cap jump in a single day.

Shares of fellow AI big spender Meta (META), however, fell as much as 9% after the company failed to provide capex guidance for 2027 and missed the midpoint on its current quarter outlook.

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Last week, Google parent Alphabet (GOOG, GOOGL) similarly spooked investors after it increased its capital expenditures to $205 billion.

In addition to its cloud business, Amazon has been expanding its chip sales, renting out capacity to Meta (META), OpenAI (OPAI.PVT), Anthropic (ANTH.PVT), and others.

CEO Andy Jassy previously teased the idea of selling the company's chips for customers to install in their own data centers, which could boost the company's bottom line.

Email Daniel Howley at dhowley@yahoofinance.com. Follow him on X at @DanielHowley.