By Adria Cimino, The Motley Fool
Publication Date: 2025-11-17 00:10:00
Nvidia’s benefited greatly from the AI boom, thanks to the strength of its chips.
Nvidia (NVDA +1.68%) has delivered fantastic news to investors quarter after quarter, and this is thanks to a wise move the company made more than a decade ago. The tech giant shifted its focus to the field of artificial intelligence (AI), with the goal of designing its chips to suit that technology perfectly.
The company has won that bet, as we can see through its revenue, climbing in the double- and triple-digits in recent years and reaching a record of $130 billion in the latest fiscal full year. Profit has also advanced, and Nvidia aims to keep this high, with goals for gross margin to continue to surpass 70%.
All this sounds great, but some investors have expressed worries about an element that could weigh on Nvidia. And this is competition from its very own customers. For example, players such as Amazon (AMZN 1.22%) and Alphabet have developed their own chips, meaning their cloud businesses don’t have to turn to Nvidia or other outside providers exclusively.
But before worrying too much about this issue, let’s consider 16 words from Amazon chief Andy Jassy that represent spectacular news for investors ahead of Nov. 19 — a big day for Nvidia.
Image source: Nvidia.
Nvidia and Amazon
First, though, a quick note about how Nvidia and Amazon work together. Nvidia designs the graphics processing units (GPUs) that power AI, from the training of models to offering the fuel they need as they…
