From Nasdaq: 2025-05-26 18:00:00

Nvidia’s sales have surged with top three customers accounting for 34% of sales last year, driven by heavy spending on GPUs for data centers. Amazon spent over $93 billion in capital expenditures in the last 122 months, focusing on AI data center expansion, with spending expected to exceed $100 billion this year. Amazon has invested in Anthropic and Marvell Technologies for AI chips.

Amazon recently bought 822,234 shares of AMD worth $90 million, making it Amazon’s third-largest equity holding. AMD, Nvidia’s closest competitor in GPUs and licensed by Intel for x86 CPUs, expects the AI accelerator market to reach $500 billion by 2028. AMD has secured partnerships for CPUs and GPUs with hyperscalers, positioning it for growth.

AMD’s CPUs and GPUs are gaining traction in data centers, making it a competitive investment. Amazon’s stake in AMD suggests market share gains. While Nvidia grows faster, AMD offers better value at 27-times forward earnings compared to Nvidia’s 32-times. AMD looks less risky and poised for growth in the AI market.

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