•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Nvidia has been one of the top ways to invest in artificial intelligence (AI) since 2023, with its GPUs serving as the go-to computing chips for many AI hyperscalers. However, investors are increasingly being told to watch Amazon as well, as Amazon Web Services (AWS) and its custom chips begin to gain traction. In a recent shareholder letter, CEO Andy Jassy made comments that directly address Nvidia’s position in AI chips.
Jassy framed Amazon’s approach by pointing to a previous shift in CPU usage. In 2018, Amazon released its Graviton CPU as a competitor to Intel. Jassy said that today, 98% of Amazon’s large clients use Amazon’s custom-designed Graviton CPUs.
He suggested a similar dynamic could occur in GPUs. Jassy said Amazon’s Trainium chips deliver better cost-performance than GPU-based training. He cited that the current generation provides about a 30% improvement over GPU-based training, and that upcoming generations are expected to offer further gains. He also noted that the computing capacity for those upcoming generations is already sold out.
While Amazon is working to take market share, Jassy also emphasized that Amazon is committed to being the best platform for customers to use Nvidia chips. In other words, Amazon is not described as abandoning Nvidia; it is positioning its platform to compete while also partnering with Nvidia.
For investors, the focus is less on Amazon’s broader e-commerce business and more on AWS, which is described as the main driver of profits. The article states that in Q4, AWS generated 50% of Amazon’s operating profits, and in Q3 that figure was 66%.
The article argues that as long as AWS continues to grow rapidly, profit growth can outpace overall revenue growth. It also points to AWS having its best quarter in over three years.
Amazon is also described as investing heavily in capacity. The article says Amazon plans to spend $200 billion in capital expenditures this year, with most of that directed toward AWS infrastructure. It adds that Amazon has commitments from several major clients to use the new capacity, which is expected to support rapid revenue growth once the infrastructure is online.
The article concludes that Nvidia shareholders should monitor Amazon’s progress with custom chips, given Amazon’s stated performance improvements and customer adoption metrics. At the same time, it suggests investors may consider Amazon shares as a way to benefit if AWS continues shifting more customer workloads toward its custom chip offerings.
Premium gym chains are entering a “golden era” that is ending or already in decline, as rising operating costs collide with shifting consumer preferences toward more flexible, community-based ways to exercise. Long-term memberships are shrinking, margins are pressured by higher rents and facility expenses, and competition from smaller, more personalized…
