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Did Amazon Just Say Checkmate to Nvidia?

The article argues Amazon (AMZN.OQ) is positioning itself to challenge Nvidia in AI over the long term by leveraging AWS, in-house chips (Trainium and Inferentia), strategic partnerships (Hugging Face), a $4B investment in Anthropic, and planned $11B in data-center spending. While Nvidia currently controls about 80% of the AI chip market, the author stresses Amazon’s vertical integration and accelerating earnings make it an attractive AI-era investment. Amazon’s stock trades near $179 (close to its $189 all-time high), but EPS growth (+181% trailing 12 months) has outpaced the stock (+50%), lowering its P/E multiple year-over-year. The piece is bullish on AMZN as a long-term AI play, suggesting the market may be underappreciating Amazon’s competitive positioning despite Nvidia’s near-term dominance.

Category

Amazon

Sentiment

Bullish

Event

Market commentary

Reading time

1 min