Shares of Amazon.com (AMZN) rose by 0.8% during the last trading session, marking a recovery from an initial slide in after-hours trading following the release of its first-quarter results on April 29. The tech giant showcased robust growth in its Amazon Web Services (AWS) cloud division; however, investor concerns lingered. There is notable skepticism regarding Amazon’s capital expenditure, as Wall Street evaluates the substantial costs of developing artificial intelligence (AI) infrastructure against the timeline for realizing profitability.
Despite these worries, Amazon is experiencing noteworthy momentum in its custom silicon business. The company’s chip division, which includes the Graviton and Trainium processors, has achieved an annual revenue run rate exceeding $20 billion, reflecting triple-digit year-over-year growth in the first quarter. As AI continues to emerge as a critical growth driver for the tech sector through 2026, these in-house capabilities further solidify Amazon’s position as a leader in the infrastructure race.
In light of the significant capital expenditure cycle, investors may find exchange-traded funds (ETFs) to be a strategic middle ground for capturing AI-driven profit growth while mitigating associated volatility. Targeting funds where Amazon is a top-10 holding allows investors to gain considerable exposure to AMZN’s upside while diversifying their asset basket.
An analysis of Amazon’s first-quarter results reveals an earnings figure of $2.78, a substantial 74.8% increase year over year. Revenue for the quarter beat consensus estimates by 2.1%, surging 17% compared to the same period last year. The AWS segment reported year-over-year sales growth of 28%, fueled by a mutually beneficial relationship between AI and core cloud services, as customers scaling AI workloads increased their AWS usage.
Amazon’s advertising segment also demonstrated solid growth, with revenues climbing 22% year over year. Forrester has recently recognized Amazon Ads as a leader in omnichannel advertising platforms, highlighting its unmatched supply and insights across connected television and commerce media.
Moreover, Amazon’s grocery business has made significant strides, positioning the company as the second largest grocer in the United States. The company currently offers same-day delivery of perishables and millions of other items in over 2,300 cities and towns nationwide.
Looking ahead, Amazon plans to leverage next-generation robotics to enhance fulfillment productivity significantly. By streamlining inventory placement and deploying advanced automation across new large-format facilities set to launch in 2026, the company aims to reduce delivery times and operational costs. Amazon expects Trainium to generate tens of billions in annual capital expenditure savings while contributing several hundred basis points to its operating margins.
For the second quarter of 2026, Amazon forecasts net sales between $194 billion and $199 billion, signaling continued momentum despite foreign exchange headwinds and inflationary pressures in transportation. The company also anticipates operating income to fall within the range of $20 billion to $24 billion, factoring in the impacts of fuel inflation and increased costs related to the ‘Amazon Leo’ satellite launch ahead of its commercial debut in the third quarter.
Investors looking to benefit from Amazon’s strong position may want to consider several Amazon-heavy ETFs. The Global X PureCap MSCI Consumer Discretionary ETF (GXPD), with net assets of $36.1 million, provides exposure to 50 U.S.-listed Consumer Discretionary companies, with Amazon representing 40.86% of the fund. Over the past year, GXPD has gained 6.3% while charging 15 basis points in fees.
The Consumer Discretionary Select Sector SPDR Fund (XLY) boasts assets under management of $23.13 billion and includes 48 U.S. companies across multiple sectors, with Amazon also taking the top spot at 27.75%. This fund has surged 19.3% over the past year, charging 8 basis points in fees. Another option is the Vanguard Consumer Discretionary ETF (VCR), which has net assets of $5.6 billion and includes 286 U.S. companies, with Amazon comprising 24.77%. VCR has rallied 20.1% over the past year, with fees at 9 basis points.
The Fidelity MSCI Consumer Discretionary Index ETF (FDIS), managing $1.6 billion in assets and including 252 companies, places Amazon at 24.67% of its holdings. FDIS has surged 19.9% in the past year, with fees of 8 basis points. Lastly, the ProShares Online Retail ETF (ONLN), with net assets worth $68.4 million, focuses on 20 e-commerce companies, again featuring Amazon at the top with 24.63%. This ETF has seen a remarkable 40.1% increase over the past year, charging 58 basis points in fees.
As Amazon continues to innovate and expand its influence in the tech and retail sectors, these ETFs present a compelling opportunity for investors looking to navigate the evolving landscape of AI and e-commerce.
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