Nvidia faces challenges with Amazon and Microsoft, but partnerships remain strong, positive.

From Nasdaq: 2024-11-05 04:50:00

In the late 19th century, coal miners used canaries to detect dangerous levels of carbon monoxide in mines. Today, investors can pay attention to comments in quarterly earnings calls for early warning signs of potential issues in companies like Nvidia (NASDAQ: NVDA).

Amazon and Microsoft, Nvidia’s major customers, have raised concerns about cost and delays. Amazon’s AWS developed its own chips for AI workloads, impacting Nvidia’s GPU sales. Microsoft faced supply issues related to Nvidia’s Blackwell GPUs, affecting its guidance for fiscal 2025.

Despite these challenges, Amazon and Microsoft expressed interest in continued partnerships with Nvidia. Both companies anticipate accelerated growth as supply constraints ease, suggesting a positive outlook for Nvidia in the long term.

Investors shouldn’t fret over Amazon and Microsoft’s updates. While Nvidia’s Q3 results may influence its stock performance, the company’s growth potential remains high. Analysts suggest considering Nvidia’s future prospects, including the success of its Blackwell GPUs, before making investment decisions.



Read more at Nasdaq: Should Nvidia Investors Worry About Amazon’s and Microsoft’s Latest Updates?