Why Alphabet And Amazon Will Always Need Nvidia

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All three — NVIDIA (NASDAQ:NVDA | NVDA Price Prediction), Alphabet (NASDAQ:GOOGL) and Amazon (NASDAQ:AMZN) — have reported earnings. Taken together, the three reports describe one connected business. Google sells its own TPUs, and Amazon is expanding Trainium. Both still buy NVIDIA systems at enormous scale. NVIDIA shares fell 18.29% over the past week, so that dependence is worth testing now.

Google Cloud and AWS Are Booming, and NVIDIA Still Supplies Both

Google Cloud revenue rose 103% to $30.71 billion, which makes it Alphabet’s main growth engine. Sundar Pichai pointed to “strong demand for our TPU systems across a wide range of customers.” NVIDIA also lists Google Cloud among the sites where Vera Rubin is in full production. Google sells its own chips while running NVIDIA’s in its data centers.