Is Amazon.com (AMZN) Undervalued As Its Nvidia GPU Bet Lifts AI Spending? - simplywall.st

This article analyzes Amazon.com's (AMZN) recent attention due to its increased investment in NVIDIA GPUs. The company plans to deploy 2 million additional NVIDIA GPUs through 2027 and 2028, marking a... Read original →

Amazon’s increased investment in NVIDIA GPUs signals a strategic push into AI infrastructure, directly boosting demand for upstream semiconductor equipment such as ASML and TSMC’s 3nm tools. AWS becomes the central platform for AI compute, reinforcing its competitive moat in cloud services. However, tightening U.S. export controls on China may constrain supply chain integration. Competitors like Meta, Alibaba, and PDD are accelerating their own AI strategies, pressuring Amazon to sustain high capital expenditure while managing margin pressure. Over the next 12–24 months, the surge in AI compute demand will reshape global semiconductor capex trends, with Amazon’s long-term strategy determining its dual-business model valuation—retail and cloud interdependence shaping its future trajectory.