By Dave Smith
Publication Date: 2026-05-24 08:30:00
If you own a broad market ETF, chances are you own Nvidia (NASDAQ: NVDA) — and probably Amazon (NASDAQ: AMZN) too. And right now, the CEO of one of these Fortune 500 heavyweights is making a very pointed case for why his company is about to take a meaningful bite out of the other’s market share.
In his 2025 annual letter to shareholders published April 9, 2026, Amazon CEO Andy Jassy made his clearest challenge yet to Nvidia’s dominance in artificial intelligence (AI) semiconductors (1). Moreover, he frames the company’s custom Trainium chips as a more cost-effective alternative to Nvidia’s graphics processing units (GPUs) (1).
“Virtually all AI thus far has been done on Nvidia chips, but a new shift has started,” Jassy wrote. “We have a strong partnership with Nvidia, will always have customers who choose to run Nvidia, and we will continue to make AWS the best place to run Nvidia. However, customers want better price-performance. We’ve seen this movie before.”
The “movie” Jassy is referencing is Amazon Web Services’ (AWS) experience unseating Intel in cloud computing. In 2018, Amazon developed its own central processing unit (CPU) chip, called Graviton (1). “In the CPU space, virtually all of the workloads ran on Intel chips until we invented Graviton in 2018,” he wrote. “Graviton, which has up to 40% better price-performance than other x86 processors, is now used expansively by 98% of the top 1,000 EC2 customers.”
“The same story arc…
