Amazon Just Sent a Massive Warning to Nvidia Investors
Nvidia (NASDAQ: NVDA) has seen its sales soar on the back of a few big customers spending heavily to outfit data centers with as many of the chipmaker's GPUs as they can buy. Its top three customers accounted for 34% of sales last year.
Amazon (NASDAQ: AMZN) is likely one of those big customers. The cloud computing giant spent over $93 billion in capital expenditures over the last 122 months, primarily focused on building out data centers for artificial intelligence (AI). That number will climb above $100 billion this year. While there's a lot of overhead, including buildings, server racks, networking equipment, and more, a good chunk of that spending goes to Nvidia for its leading-edge GPUs.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
But Nvidia's chips aren't the only ones Amazon uses in its servers, and the company just sent a signal that a competitor could be taking up more space in its data centers this year.
Amazon's newest AI investment
Amazon was caught flat-footed as generative AI took off in late 2022, but it's invested heavily to catch up with its competitors ever since. It made a $4 billion investment in Anthropic early last year, and it added another $4 billion in November. The most recent deal included a strategic partnership where Anthropic will use Amazon's custom silicon for large language model training and inference.
Amazon's custom AI chips are designed in partnership with Marvell Technologies. Marvell also makes networking chips and other data center chips among a broader silicon portfolio. Amazon made a small equity investment in the company in late 2021 well before it chose the chipmaker for its custom Trainium and Inferentia chips.
Amazon recently made another AI investment. Its first-quarter 13F filing with the SEC revealed a purchase of 822,234 shares of Advanced Micro Devices (NASDAQ: AMD). Those shares are worth about $90 million at today's price, which isn't a huge investment for a company generating tens of billions of dollars in free cash flow every quarter. However, that's still enough to make it Amazon's third-largest marketable equity holding in its portfolio.
AMD is Nvidia's closest competitor when it comes to advanced GPUs. It's also the only company Intel has licensed to use its x86 CPU architecture, which is essential for Windows PCs and servers. The chipmaker is well positioned to gain market share on both fronts (GPUs and CPUs), and Amazon's equity investment could signal an acceleration in AMD's sales to the largest cloud computing company in the world.
A $500 billion market
AMD CEO Lisa Su believes the AI accelerator market -- which includes GPUs and custom silicon solutions like Marvell's -- will grow at an average rate of 60% per year from 2025 through 2028 to reach $500 billion. While Nvidia will likely take the bulk of that spend, smaller companies are positioned to gain market share over that period with improved price performance. Not to mention, AMD and other chipmakers offer cloud providers a chance to diversify away from reliance on Nvidia, ensuring Nvidia's chip prices don't balloon out of control.
Indeed, AMD recently struck a deal with Oracle to deploy a cluster of 30,000 AMD MI355X accelerators, which helped push AMD's data center segment revenue 57% higher year over year in the first quarter. AMD's existing data center partnerships for its EPYC CPUs with all the hyperscalers put it in a great position to expand those relationships with its Instinct GPUs.
On top of the opportunity in GPUs, AMD has become a leading provider of CPUs for cloud computing. That can be attributed to Intel falling behind in technological capabilities relative to Taiwan Semiconductor Manufacturing, where AMD prints its chips. As a result, AMD can offer better price performance with its more power-efficient chips.
With better CPUs and a competitive GPU lineup, AMD should continue to take up more and more real estate in the hyperscalers' data centers.
Investors can buy AMD stock today for 27-times forward earnings. That's a premium to the overall market, but a discount relative to Nvidia, which trades closer to 32-times earnings. That said, Nvidia continues to grow faster than AMD thanks to its pricing power and scale, so it may deserve a premium to AMD.
Amazon very likely bought shares at a better valuation than investors can get today, but its stake in AMD is a strong indication that the chipmaker is continuing to make progress in gaining market share. Given AMD's solid CPU business and the upside potential of gaining share in the fast-growing AI accelerator market, the stock looks less risky than Nvidia at its current price.
Should you invest $1,000 in Advanced Micro Devices right now?
Before you buy stock in Advanced Micro Devices, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Advanced Micro Devices wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!*
Now, it's worth noting Stock Advisor 's total average return is957% — a market-crushing outperformance compared to167%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of May 19, 2025
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Adam Levy has positions in Amazon and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon, Intel, Nvidia, Oracle, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Marvell Technology and recommends the following options: short May 2025 $30 calls on Intel. The Motley Fool has a disclosure policy.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
an hour ago
- Globe and Mail
Wisr AI Systems Inc. Accelerates Global Business Development at Web Summit Vancouver, InfoSec Europe, and VivaTech Paris
Vancouver, British Columbia--(Newsfile Corp. - June 22, 2025) - Wisr AI Systems Inc. (CSE: WISR) (" Wisr AI" or the " Company"), a leading provider of AI-driven cyber and third-party risk intelligence, is pleased to announce the successful execution of several strategic business development initiatives across recent key global technology conferences, including Web Summit Vancouver, InfoSec Europe in London, and VivaTech Paris. Web Summit Vancouver (May 27-30, 2025) Wisr AI participated as part of the official AI delegation at Web Summit Vancouver, where CEO Rob Goehring was featured on panels discussing the future of predictive AI in enterprise cybersecurity and risk management. The Company held targeted meetings with industry stakeholders, public-sector innovation leaders, and investors. These engagements served to strengthen Wisr AI's leadership role in Canada's AI sector while building new relationships across the North American innovation landscape. InfoSec Europe, London (June 3-5, 2025) At InfoSec Europe, one of Europe's leading cybersecurity conferences, Wisr AI advanced its market development objectives through high-level engagements with managed service providers, enterprise IT risk teams, and government-backed cyber programs. The Company showcased its predictive risk platform designed to detect vendor vulnerabilities, ingest global intelligence signals, and automate prioritization of emerging cyber threats. The event marked a key milestone in Wisr AI's strategy to expand its European footprint. VivaTech Paris (June 11-14, 2025) Wisr AI was honoured to be selected as part of Canada's official delegation to VivaTech Paris, where Canada was recognized as "Country of the Year". The event brought together over 180,000 attendees and 2,800 exhibitors, including a strong cohort of AI-focused companies from around the world. Wisr AI used the opportunity to demonstrate how its platform leverages artificial intelligence to improve cyber resilience and compliance across complex global supply chains. Throughout the conference, Wisr AI engaged in bilateral meetings with multinational corporations, innovation ministries, and enterprise risk teams. These discussions were supported by Canadian and provincial trade delegations and enabled the Company to identify potential new European partners, explore collaboration with cross-border regulatory frameworks, and align with emerging AI safety and sovereignty initiatives. Rob Goehring, CEO of Wisr AI, stated: "These global events provided a powerful platform for Wisr AI to expand its reach and share our vision of proactive, intelligence-led risk management. We're proud to represent Canadian innovation on the world stage and are encouraged by the momentum we've built with partners and prospects in both North America and Europe." Equity Incentive Grants The Company also announces that on June 20, 2025, Wisr AI adopted a "rolling" omnibus equity incentive plan (the " Incentive Plan") and granted a total of 4,550,000 stock options and 3,900,000 restricted share units (" RSUs") to certain directors, officers, and consultants of the Company. Each stock option is exercisable into one common share of the Company at a price of $0.15 per share for a period of up to 5 years. The RSUs vest in accordance with time-based criteria established by Wisr AI's Board of Directors, with none of the RSUs vesting until at least six (6) months following the grant date. The grants are intended to align the interests of the Company's team with long-term shareholder value creation and to support the continued growth and success of Wisr AI. The foregoing stock options and RSUs are subject to the Incentive Plan in all respects, as well as any required approvals of the Canadian Securities Exchange and the Company's shareholders. About Wisr AI Systems Inc. Wisr AI Systems Inc. (CSE: WISR) is a Vancouver-based technology company specializing in AI-powered cyber risk prediction and third-party risk intelligence. The Company's platform analyzes real-time global signals—including breach data, dark web intelligence, and firmographic context—to help organizations identify, prioritize, and act on emerging cyber and supply chain risks. Wisr AI supports enterprise resilience by enabling dynamic, scalable, and predictive governance, risk, and compliance (GRC) strategies. The Canadian Securities Exchange has not in any way passed upon the merits of the matters referenced herein and has neither approved nor disapproved the contents of this news release. Forward-Looking Information: This news release may contain statements that constitute "forward-looking information" within the meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs and current expectations of the Company with respect to future business activities and operating performance. Forward-looking information is often identified by the words "may", "would", "could", "should", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" or similar expressions and includes information regarding, among other things, expectations for other economic, business, and/or competitive factors. Investors are cautioned that forward-looking information is not based on historical facts but instead reflects expectations of the Company's management, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although the Company believes that the expectations reflected in such forward-looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of the Company. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information are the following: changes in general economic, business and political conditions, including changes in the financial markets; changes in applicable laws; and compliance with extensive government regulation. This forward-looking information may be affected by risks and uncertainties in the business of the Company and market conditions. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update this forward-looking information except as otherwise required by applicable law.
CBC
2 hours ago
- CBC
Credit card debt is down in Canada — but household debt is up
Mark Ting, a partner with Foundation Wealth and On The Coast's personal finance columnist, says that while credit card debt going down may seem like a good thing, he's seeing borrowers tack on their debt to larger loans like mortgages. He shares tips on how to manage your debts and credit cards amid financial uncertainty.
Globe and Mail
2 hours ago
- Globe and Mail
WNP Launches All-in-One Hyaluronic Acid Skincare Set, Pioneering a "3-Step Scientific Skincare Method"
Culver City, California--(Newsfile Corp. - June 22, 2025) - Skincare brand WNP officially launched the "All-in-One Hyaluronic Acid Skincare Set" on its website, introducing its original "Three-Step Scientific Skincare Method." The set integrates five key skincare steps - cleansing, hydration, repair, brightening, and early-stage anti-aging - into a comprehensive skincare system based on four core innovations: nano-delivery, HTAC thermal water dynamics, 4D hyaluronic acid, and microencapsulation technology. This set offers a streamlined solution for everyday skincare needs. To view an enhanced version of this graphic, please visit: Four Key Innovations Nano-Liposome Delivery WNP utilizes nano-liposome technology to reduce Ceramide NP particle size to below 100 nm, enabling targeted delivery to the basal layer of the stratum corneum. Lab tests show it helps fill intercellular lipid gaps and reduce transepidermal water loss, offering industry-leading repair benefits for sensitive and barrier-damaged skin. HTAC Thermal Decomposition Water Dynamics WNP's toner features Italian patented HTAC technology, which protects red algae and recombinant collagen activity. Tests show it boosts natural hyaluronic acid production by 124% and cellular mitochondrial activity by 229%. 4D Hyaluronic Acid Multi-Layer Hydration Based on Bloomage Biotech's 4D hyaluronic acid formulation, four molecular weights of hyaluronic acid penetrate from the epidermis to the dermis. Combined with a water-in-oil lamellar emulsion structure, this provides deep, lasting hydration. Microencapsulated Time-Release Salicylic Acid Salicylic acid is microencapsulated for sustained release of active ingredients, delivering gentle exfoliation while minimizing irritation. Ideal for daily use on sensitive or combination-oily skin. Five Steps, One Streamlined Routine Gentle Cleansing: A non-soap amino acid cleanser with pH 5.5-6, refined through 45℃ natural crystallization to remove excess emulsifiers. Fine foam gently purifies without residue. Soothing & Hydration: A serum-texture toner that forms a water film on contact. Functions as both mist and toner for instant moisture. Targeted Hydration: 3% Hyaluronic Acid Capsules, a TikTok bestseller, delivers precise hydration without pilling. Brighten & Even: A matrix of niacinamide, SymWhite®377, and vitamin C derivatives to block melanin transfer and fade oxidized spots. Early Anti-Aging: Patented recombinant collagen, triple peptides, and multiple ceramides to rebuild elasticity and visibly firm skin within 28 days. Brand Vision "With this launch, WNP merges cutting-edge nano-delivery with a multi-dimensional hyaluronic hydration system to redefine what 'minimalist skincare' can mean," said WNP's Chief Product Spokesperson-Dr. Emily. "We believe skincare is shifting from ingredient stacking to true tech-enabled performance-and this launch is the clearest expression of that evolution." About WNP WNP (Wake Nature Perfection) is a science-driven skincare brand based in Asia, rooted in the philosophy of precision skincare. It integrates top-tier dermatological research with global innovations in active ingredients. As an industry innovator, WNP has introduced multiple "first-of-its-kind" technologies in both domestic and international markets, committed to delivering safe, effective, and targeted skincare solutions. For more information, please visit
