By Rashika Singh and Deborah Mary Sophia

(Reuters) -Amazon shares jumped nearly 12% in premarket trade on Friday after strong growth at its cloud unit and a bullish sales outlook eased fears that the tech giant was falling behind rivals in the AI race.

Revenue at Amazon Web Services, the hub of the company’s recent AI investments, rose 20% in the third quarter, compared with Microsoft Azure’s 40% and Google Cloud’s 34%.

However, analysts said the rebound marked a potential turning point for Amazon.

The company’s $33 billion in quarterly cloud revenue is more than double of Google’s $15.16 billion.

“There was definitely concern about AWS losing market share to Microsoft Azure and Google Cloud,” said Jed Ellerbroek, portfolio manager at Argent Capital.

“But now AWS is aboard the train

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