Amazon Shares rose 7% on Friday, nearing a record high, after the company reported better-than-expected earnings, driven by growth in its cloud computing and advertising businesses.

The stock is up about 32% this year, hitting $200.50 on Friday. The highest closing price was $200, a milestone the stock reached twice in July.

Revenue rose 11% to $158.9 billion in the quarter, ahead of the $157.2 billion estimate from analysts polled by LSEG. The profit of $1.43 exceeded the average analyst expectation of $1.14.

Revenue in Amazon Web Services’ cloud business rose 19% to $27.4 billion, just below analyst estimates, StreetAccount said. That was an acceleration from 12% a year ago, but lagged behind the growth of competitors Microsoft And Googlingwhere cloud revenues rose 33% and 35% respectively. Microsoft’s Azure number includes other cloud services.

Amazon’s capital expenditures rose 81% year over year to $22.62 billion as the company continues to invest in data centers and equipment such as Nvidia processors to power artificial intelligence products. Amazon has launched several AI products across its cloud and e-commerce businesses, and it is also expected to announce a new version of its Alexa voice assistant powered by generative AI.

“Amazon has integrated AI into what is the most diverse technology footprint of any megacap, with billions in revenue streams across e-commerce, advertising, subscriptions, online video and cloud,” Roth MKM analysts wrote in a note after the earnings report. They have a buy rating for the stock.

Brian Olsavsky, Amazon’s CFO, said on the earnings call that the majority of the company’s capital expenditures through 2024 are intended to support its growing need for technology infrastructure.

CEO Andy Jassy said the company plans to spend about $75 billion on capital expenditures in 2024 and that he suspects the company will spend more next year.

“The increases here are actually driven by generative AI,” Jassy said on the call. “It’s really an unusually large, perhaps once-in-a-lifetime opportunity,” he said, noting that shareholders “will feel good about this long term, that we’re aggressively pursuing it.”

Advertising was another bright spot. Revenue in this division grew 19% to $14.3 billion during the quarter, meeting expectations and exceeding growth in Amazon’s core businesses.

Amazon’s ad growth was roughly in line with Metawhich saw growth of 18.7%, faster than growth at Google, which reported a 15% increase in advertising revenue. Snap‘s turnover also increased by 15% compared to a year earlier.

Amazon expects current quarter revenue to be between $181.5 billion and $188.5 billion, which would represent 7% to 11% year-over-year growth. The midpoint of that range, $185 billion, fell short of the average analyst estimate of $186.2 billion, according to LSEG.

— CNBC’s Ari Levy contributed to this report

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