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Despite a highly volatile performance over the past month, Nvidia (NVDA) has recently taken some steps to keep investors excited about its future.
The artificial intelligence (AI) leader completed a successful week of product unveils and updates at the annual Nvidia GTC (global technology conference) 2025. This included the debuts of multiple highly anticipated GPUs (graphics processing units) and notable advances in robotic technology.
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Right now, Nvidia and most of its big-tech peers are facing a highly complicated industry landscape. With President Donald Trump’s recent tariffs pushing down financial markets, most high-growth tech stocks are plunging amid high economic uncertainty.
However, that doesn’t mean these companies are not focused on growth or that they plan on scaling back innovation. Amazon (AMZN) recently revealed a plan to expand its share of a booming tech market that could severely impact Nvidia.
Nvidia is facing an uncertain future as Amazon reveals ambitious plans
Over the past few years, the AI market has boomed in spectacular fashion, creating new opportunities for both investors and consumers. As they have tried to procure a share of it, many tech companies have struggled with one thing: competing with Nvidia.
The company most synonymous with the current AI revolution, Nvidia has benefited from providing GPUs that are widely considered to be the best available. While the rise of Chinese AI startup DeepSeek’s R1 model triggered a selloff for Nvidia and its peers, the company remains an AI favorite among Wall Street analysts.
Related: Analyst unveils startling Nvidia stock forecast amid tariffs
One reason for Nvidia’s success is the industry-wide reliance on its chips. However, other tech companies have focused on developing their own in a clear attempt to decrease their reliance on Nvidia’s highly priced GPUs, and Amazon seems to be getting close.
Amazon Web Services (AWS), the tech conglomerate’s cloud computing subsidiary, has revealed a new strategy that centers around luring Nvidia’s customers away.
According to The Information, it has already spoken to at least one company, claiming that AI servers powered by its Trainium chip can deliver the same quality as the Nvidia H100 but at only 25% of the cost.
For companies that don’t want to pay Nvidia’s extremely high prices for hardware, such an offer could be extremely enticing. TechRadar provided further context on these AWS AI chips, stating:
“Trainium is one of several in-house chips that Amazon has developed (alongside Graviton and Inferentia), built for training machine learning models in the AWS cloud, and offering a lower-cost alternative to GPU-based systems. Amazon’s silicon is not intended as a like-for-like replacement for Nvidia’s more advanced products, but it doesn’t need to be.”