Nvidia shares went up early Friday after Amazon made comments highlighting how important Nvidia’s chips still are for building AI infrastructure.
The stock rose 1.6% in early trading, which could help Nvidia regain its spot as the world’s most valuable company. This comes after Apple shares dropped sharply following its earnings report on Thursday.
Nvidia’s possible return to the top in market value was not the only good news linked to Big Tech earnings. Amazon increased its full-year capital spending forecast to $220 billion from $200 billion and said there is not much competition between its own AI chips and Nvidia’s processors.
Amazon CEO Andy Jassy said during the company’s earnings call that Amazon has a strong partnership with Nvidia. He added that Amazon wants its cloud platform to be the best place to use Nvidia chips, and that many customers plan to keep using Nvidia hardware for now.
Jassy made similar comments a year ago, describing a close relationship with Nvidia and saying Amazon would keep buying its chips. Still, some Nvidia investors are cautious because there are reports that Amazon might start selling its own Trainium AI chips directly to other customers.
On Thursday, Jassy said more customers want to buy Amazon’s training infrastructure and chips separately from its cloud services. He said the company is looking into this option and might go ahead with it in the future.
The threat from custom AI chips isCustom AI chips are still a challenge for Nvidia, but for now, the company is still the leader in this area.
