Amazon Shares Rise on Expanded AWS Chip Deal While NVIDIA Stock Falls
Shares of Amazon rose nearly 4% following an announcement that its cloud computing arm, AWS, has expanded a chip deal with NVIDIA to include the deployment of two million additional GPUs for AI and robotics. The move is seen as validation of AWS's momentum in the fast-growing AI infrastructure market. In contrast, NVIDIA shares fell by about 4%, despite being the supplier in this partnership. This decline appears tied more broadly to a selloff across semiconductor stocks rather than any specific negative news related to NVIDIA itself. Amazon’s capital expenditures are expected to reach $220 billion in 2026, and its free cash flow has already turned negative. The broader tech market also showed mixed reactions: Microsoft (MSFT) and Alphabet (GOOGL) both rose by about 2%, suggesting that hyperscale cloud providers with strong AI commitments are outpacing their chip suppliers at the moment.
Tickers: $AMZN $GOOGL $MSFT $NVDA
Topics: AI infrastructure AWS GPU demand NVIDIA semiconductor sector