Amazon's investment in AI chipmaker AMD could signal a shift away from Nvidia

From Nasdaq: 2025-05-20 09:45:00

Investors can track Wall Street’s moves through Form 13F filings, revealing stock purchases and sales by large money managers. Amazon’s recent 13F showed investments in companies like Rivian Automotive and Marvell Technology, and a new position in AMD worth $84 million. This move could signal a shift away from Nvidia in Amazon’s AI infrastructure plans.

Amazon’s $8 billion investment in AI start-up Anthropic, utilizing AWS cloud infrastructure and custom silicon chips, has boosted revenue and margins. By investing in AMD, Amazon may be diversifying its chip stack and reducing reliance on Nvidia. With AMD’s potential growth in data center GPUs, the stock presents a compelling opportunity compared to Nvidia.

Despite AMD’s higher forward P/E ratio, its growth prospects and expanding customer base suggest a reasonable valuation. Amazon’s investment in AMD could solidify the chipmaker’s role in the AI infrastructure space. Consider AMD as a strong buying opportunity, potentially outperforming Nvidia in the long run.

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