Citron Research founder Andrew Left believes Amazon.com poses the most significant threat to NVIDIA's dominance in the artificial intelligence chip market and has set a $300 price target for the stock, implying roughly 30% upside from Thursday's closing price of $233.65.
Left has maintained a short position on NVIDIA for some time but continues to believe the company could face challenges.
The short-seller specifically referenced Amazon CEO Andy Jassy's 2025 shareholder letter released on Thursday. In the letter, Jassy outlined Amazon's ambitious AI expansion plans, claiming they would transform the economic model of the AWS platform. His statements also included a prediction that customers would begin moving away from AI chips produced by NVIDIA.
"We have a strong partnership with NVIDIA, and there will always be customers who choose to run NVIDIA's programs. We will continue working to make AWS the best platform for running NVIDIA software," Jassy wrote. "However, customers are seeking better value for their money."
Left accurately predicted years ago that NVIDIA was highly likely to become the dominant player in the AI market. Now, he explicitly agrees with Jassy's view that the industry is on the verge of transformation. In a post on X from his Citron Research firm, he described the letter as "disruptive" and set a $300 price target for Amazon stock. Over the past 12 months, Amazon shares have risen 35%.
In an interview, Left disclosed that he holds a long position in Amazon, stating, "It has been a core holding of mine for many years."
He noted that investors have been cautious about what they perceive as excessive investment in AI, adding that Jassy's plans indicate that high capital expenditures are about to pay off.
"Today, Jassy showed you the results of those capital expenditures," Left wrote. "This is the most serious threat ever to NVIDIA's semiconductor market dominance."
Left is highly optimistic about AWS's new Trainium4 chip, which Jassy mentioned in his letter is nearly sold out.
Although Amazon's market capitalization already exceeds $2 trillion, Left stated he believes that as AWS further expands into the chip sector, it will give Amazon a unique competitive advantage within the technology industry.
"This is another trillion-dollar company hidden inside Amazon," he said. "It doesn't exist within a single-vendor model. It absolutely does not exist."
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