In recent news, stocks of NVIDIA Corp. (NVDA) have been declining due to reports indicating that Amazon.com Inc. (AMZN) has stopped ordering the company’s most advanced superchip. Amazon is reportedly waiting for more powerful models introduced this year before making further orders.
Nvidia recently launched its new chip architecture called Blackwell, which contains 208 billion transistors and is expected to cost between $30,000 and $40,000. This chip is said to be twice as powerful as the previous Grace Hopper chip. Amazon Web Services has transitioned its orders from Hopper to Nvidia’s latest Grace offering.
An Amazon spokesperson clarified that AWS did not hold any orders from Nvidia, but instead decided to move from Hopper to Blackwell GPUs for improved performance. Nvidia has not commented on the situation due to a quiet period ahead of its quarterly earnings report.
Analysts are divided on Nvidia’s future, with some expecting a strong demand for its AI chips while others express concerns about a potential slowdown in demand. Nvidia is set to report its first-quarter financial results, with expectations of earnings per share of $5.59 and revenue of $24.645 billion.
Nvidia’s stock price has seen an increase of almost 90% this year, despite the recent decline. At the time of writing, Nvidia shares were down 1.13% to $937.07.
In conclusion, the situation between Nvidia and Amazon highlights the fast-paced nature of technology and the competitive landscape in the industry. It remains to be seen how the companies will navigate the changing demands of the market and continue to innovate in the AI space.
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https://www.tradingview.com/news/benzinga:7bb04e0f1094b:0-nvidia-stock-drops-on-report-amazon-has-fully-transitioned-ai-chip-orders-the-details-updated/