By Keithen Drury
Publication Date: 2026-04-18 23:21:00
Most people wouldn’t place Amazon (AMZN +0.26%) and Nvidia (NVDA +1.67%) in the same competitive landscape. At a glance, Amazon looks like an e-commerce investment, while Nvidia is a bet on a continued artificial intelligence (AI) infrastructure build-out. However, that’s only partially true.
Amazon has a booming cloud computing wing with Amazon Web Services (AWS). While it has Nvidia chips to support training and inference, it also has its own custom AI chips, whose business is on fire. Amazon took several shots at Nvidia in its recent shareholder letter, showcasing the dominance of Amazon’s custom AI chips over Nvidia’s, so much so that some investors may be worried about Nvidia losing significant market share to Amazon.
So, is Amazon now the stock to buy over Nvidia? Let’s find out.
Image source: Getty Images.
Amazon’s chips showcase better performance
In Amazon’s recent shareholder letter, it disclosed several impressive stats about Amazon’s custom chips. They started by discussing its first custom chips, Graviton.
Before 2018, Intel CPUs dominated the cloud computing space. However, after Amazon introduced Graviton, its custom CPU, it quickly took over by offering a 40% better price performance than Intel’s chips. Amazon predicts that the AI market will go the same way.
Today’s Change
(0.26%) $0.66
Current Price
$250.36
Key Data Points
Market Cap
$2.7T
Day’s Range
$250.11 – $256.19
52wk Range
$165.28 – $258.60
Volume
2.3M
Avg Vol
52M
Gross Margin
50.29%
Its Trainium2 chip offers…
