By Prosper Junior Bakiny, The Motley Fool
Publication Date: 2026-04-15 12:20:00
Key Points
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Amazon’s AI chips are seeing surging demand.
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However, Nvidia’s chips remain the industry leaders.
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Nvidia should thrive in the new AI era.
Nvidia (NASDAQ: NVDA) has dominated the market for artificial intelligence (AI) chips over the past three years. The company has been rewarded for its efforts. Revenue and earnings have soared, as has the tech giant’s stock price. However, some investors are worried that Nvidia will eventually face stiff competition that will erode its pricing power and market share. So far, that hasn’t happened: AMD, Nvidia’s main competitor, remains a distant second.
But the threat to Nvidia could come from an unexpected source: Amazon (NASDAQ: AMZN). Let’s consider why and discuss the implications for Nvidia’s prospects.
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Person working in a data center.
Image source: Getty Images.
Amazon’s booming AI chip business
Amazon is the leading cloud computing company and provides a wide range of services, including the ability to train and run AI models. The tech giant has built its own chips, including its Trainium franchise, specifically designed for training. Amazon’s customers can train and run models on its internally developed chips or on Nvidia’s. And according to CEO Andy Jassy, Amazon’s chips are very popular. As he said in a…