ArcelorMittal (ArcelorMittal (MT)) is taking a big step into the digital age. The steel giant announced Monday that it's expanding its partnership with Amazon Web Services (AWS) to bring cloud computing, artificial intelligence, and industrial IoT to its steel plants around the world. The goal? Safer, more efficient, and lower-carbon steel production.

But this isn't just a one-way street. Amazon (Amazon (AMZN)) has also signed a multi-year deal to buy steel from ArcelorMittal — specifically, lower-carbon XCarb steel — for its own operations facilities and AWS data centers. So ArcelorMittal gets AWS's tech, and Amazon gets greener steel. It's a classic win-win.

What ArcelorMittal Is Doing with AWS

ArcelorMittal said it will integrate AWS's cloud, AI, and edge technologies into its manufacturing operations. The idea is to converge operational technology (OT) — the stuff that runs the machines — with information technology (IT) — the stuff that runs the business — on AWS infrastructure. That means extending cloud and AI capabilities right to the edge of the production floor.

Practically, this involves using industrial IoT sensors, real-time data, and machine learning for a bunch of things:

• Predictive maintenance — catching equipment problems before they cause downtime.
• Computer vision-based quality control — using cameras and AI to spot defects.
• Process optimization — tweaking production in real time for efficiency.
• Digital twins — virtual replicas of physical assets and production lines to simulate and improve operations.

AWS will also design and deliver a training program for ArcelorMittal's global workforce to help them adopt these new tools. Because even the best tech is useless if people don't know how to use it.

Amazon's Steel Deal: Lower Carbon, Higher Ambition

On the other side of the partnership, Amazon has signed a Supply Framework Agreement to buy structural steel from ArcelorMittal for its facilities across Europe and the UK. The steel in question is ArcelorMittal's XCarb brand, which is produced with lower carbon emissions. This supports Amazon's goal of reaching net-zero carbon by 2040.

The companies said the deal reflects their shared ambition to cut carbon emissions from large-scale building construction. For Amazon, that means greener data centers and warehouses. For ArcelorMittal, it's a vote of confidence in its lower-carbon steel products.

What the Charts Say

ArcelorMittal's stock has had a remarkable run. Shares are up 107.56% over the past 12 months. The stock is still 24.7% above its 200-day moving average of $50.82 and 4.8% above its 100-day moving average of $60.46, so the long-term uptrend is intact.

But near-term momentum is more mixed. The stock is trading 6.9% below its 20-day moving average of $68.08 and just 0.2% below its 50-day moving average of $63.52. That puts it in a technical decision zone. The 20-day SMA is still above the 50-day, and the 50-day is above the 200-day, so the broader bullish trend is preserved. But the MACD indicator suggests momentum has cooled after the June rally. A move above the signal line would signal renewed upside, while continued weakness could mean more consolidation.

Key resistance is around $65.00, with initial support near $59.00.

Earnings and Analyst Views

ArcelorMittal is set to report second-quarter results on July 30. Wall Street expects earnings of $1.23 per share, down from $1.32 a year ago, on revenue of $16.96 billion, up from $15.93 billion.

The stock trades at about 16.6 times earnings and has a consensus Buy rating, with an average analyst price target of $67.10. Recent analyst moves include:

• Wells Fargo maintained Equal-Weight and raised its price target to $61 on May 1, and to $60 on April 16.
• JPMorgan downgraded the stock to Underweight on March 9.

ArcelorMittal shares were down 0.05% at $63.38 in premarket trading Monday.

So, two big companies are betting on each other. ArcelorMittal gets the tech to modernize its plants, and Amazon gets the steel to build its future. It's a deal that could set a template for how heavy industry and big tech work together on decarbonization.