By Keithen Drury, The Motley Fool
Publication Date: 2026-04-18 23:41:00
Key Points
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Amazon’s custom chip computing capacity is nearly sold out.
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Nvidia is still experiencing accelerating revenue growth.
Most people wouldn’t place Amazon (NASDAQ: AMZN) and Nvidia (NASDAQ: NVDA) 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.
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So, is Amazon now the stock to buy over Nvidia? Let’s find out.
Investor looking at phone in shock.
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…
