Amazon Just Committed to 2 Million More Nvidia GPUs, and the Stock Traded Lower

Amazon (NASDAQ:AMZN) got the kind of news on Wednesday that artificial intelligence (AI) infrastructure stocks usually rally on. Amazon Web Services (AWS) and Nvidia (NASDAQ:NVDA) announced that AWS will deploy 2 million additional Nvidia graphics processing units (GPUs) across its global infrastructure in 2027 and 2028. The commitment roughly triples the total the cloud giant had signed up for just five months earlier.The market's reaction split the two companies. Nvidia, which reported earnings this week, jumped almost 9% on Thursday. Amazon, however, slipped about 1.5%, trading at about $256 as of this writing.Which is it for Amazon shareholders: confirmation that demand for AI computing keeps outrunning supply, or 2 million more reasons to worry about a capital budget that already reached $220 billion this year?Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool