Amazon’s Custom AI Chips Test The Durability Of Nvidia’s Data Center Role

Simply Wall St.08:15

Amazon reports its new custom AI chips are close to fully booked in its data centers, directly challenging third party providers such as Nvidia. Despite pushing its own silicon, Amazon plans to keep ...

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Despite pushing its own silicon, Amazon plans to keep ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/semiconductors/nasdaq-nvda/nvidia/news/amazons-custom-ai-chips-test-the-durability-of-nvidias-data\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Amazon’s Custom AI Chips Test The Durability Of Nvidia’s Data Center Role</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAmazon’s Custom AI Chips Test The Durability Of Nvidia’s Data Center Role\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-04-20 08:15 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/semiconductors/nasdaq-nvda/nvidia/news/amazons-custom-ai-chips-test-the-durability-of-nvidias-data><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Amazon reports its new custom AI chips are close to fully booked in its data centers, directly challenging third party providers such as Nvidia. Despite pushing its own silicon, Amazon plans to keep ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/semiconductors/nasdaq-nvda/nvidia/news/amazons-custom-ai-chips-test-the-durability-of-nvidias-data\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":null,"symbol_name":null,"start_time":0,"source_url":"https://simplywall.st/stocks/us/semiconductors/nasdaq-nvda/nvidia/news/amazons-custom-ai-chips-test-the-durability-of-nvidias-data","article_id":"2628718285","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/company-cover/32307-main-header/1756191861077"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/semiconductors/nasdaq-nvda/nvidia/news/amazons-custom-ai-chips-test-the-durability-of-nvidias-data","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2628718285","pubTimestamp":1776644149,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Amazon reports its new custom AI chips are close to fully booked in its data centers, directly challenging third party providers such as Nvidia.\nDespite pushing its own silicon, Amazon plans to keep offering Nvidia hardware to meet customer demand and address capacity needs.\nThe move highlights rising competition in AI infrastructure while underlining Nvidia’s ongoing role in large scale cloud workloads.\n\nNVIDIA (NasdaqGS:NVDA) sits at the center of this shift, with Amazon’s custom chip push...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{},"translate_title":"亚马逊定制AI芯片考验英伟达数据中心角色的持久性","themeId":null,"isJumpTheme":false,"ttsUrl":"https://static.tigerbbs.com/3e47551947d7e1808be3a8c162552190","symbols_score_info":{"META":0.6,"NVDL":0.6,"NVDO":0.6,"GOOG":0.6,"NVDB":0.6,"NVII":0.6,"NVDW":0.6,"AMZP":0.6,"NVDS.UK":0.6,"NVDY":0.6,"NVDX":0.6,"NVD3.UK":0.6,"3NVD.UK":0.6,"AMZZ":0.6,"DIPS":0.6,"TSLA":0.6,"AMZN":1.95,"NVDU":0.6,"AMZW":0.6,"NVIW.SI":0.6,"AMZD":0.6,"NVDQ":0.6,"VGT":0.69,"AIYY":0.6,"NVDS":0.6,"SNVD.UK":0.6,"NVDA":1.98,"AMZU":0.6,"2NVD.UK":0.6,"NVDG":0.6,"AZYY":0.6,"AMZY":0.6,"ANV":0.6,"NVD2.UK":0.6,"AAPL":0.6,"USAW.SI":0.6,"NVDD":0.6,"NVD":0.6},"content_text":"Amazon reports its new custom AI chips are close to fully booked in its data centers, directly challenging third party providers such as Nvidia. Despite pushing its own silicon, Amazon plans to keep offering Nvidia hardware to meet customer demand and address capacity needs. The move highlights rising competition in AI infrastructure while underlining Nvidia’s ongoing role in large scale cloud workloads.  NVIDIA (NasdaqGS:NVDA) sits at the center of this shift, with Amazon’s custom chip push coming at a time when Nvidia’s AI GPUs are widely used across major cloud providers. The stock last closed at $201.68, with a 1 year return of 98.8% and a 5 year return of roughly 12x. These figures underline how closely investor expectations are tied to Nvidia’s role in AI data centers. For you as an investor, the key takeaway is not that Amazon is replacing Nvidia. Instead, cloud providers are adding more options around Nvidia’s core offering. Amazon’s decision to keep relying on Nvidia while promoting its own chips points to a more nuanced competitive picture where customer preferences, capacity constraints, and workload mix all influence how demand for Nvidia’s products may evolve. Stay updated on the most important news stories for NVIDIA by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on NVIDIA. NasdaqGS:NVDA Earnings & Revenue Growth as at Apr 2026 We've flagged 2 risks for NVIDIA. See which could impact your investment. Amazon’s push into custom AI chips is an important test of how durable NVIDIA’s role is at the heart of cloud AI infrastructure. On one side, Amazon’s near fully booked in house silicon shows that hyperscalers are serious about controlling key components and optimizing for their own workloads. On the other side, Amazon’s decision to keep deploying NVIDIA GPUs because of customer preference and production capacity underlines how hard it is to fully substitute NVIDIA in the near term. For you, this points to a more mixed business model picture where NVIDIA supplies a critical baseline of AI compute while large customers increasingly blend in their own accelerators. AdvertisementHow This Fits Into The NVIDIA Narrative  The shift aligns with the narrative that rising AI demand supports a multi year data center buildout, with NVIDIA still providing a large share of the compute that underpins those AI factories even as custom chips are added. At the same time, Amazon’s custom silicon directly reflects one of the narrative’s key risks, that hyperscalers and enterprises design their own chips, which could pressure NVIDIA’s long run share and pricing power. The current narrative focuses heavily on overall AI backlog and product cadence rather than the specific mix of third party versus in house accelerators at customers such as Amazon, Microsoft and Google, so chip mix risk may be under described.  Knowing what a company is worth starts with understanding its story.\nCheck out one of the top narratives in the Simply Wall St Community for NVIDIA to help decide what it is worth to you. The Risks and Rewards Investors Should Consider  ⚠️ Custom AI chips from Amazon, and similar efforts at Microsoft, Google and Meta, speak directly to the risk that large buyers reduce dependence on NVIDIA over time. ⚠️ Analysts have already flagged a high level of non cash earnings, so if cloud providers use more in house silicon, it may be harder for you to judge how sustainable current profit quality is. 🎁 Amazon’s choice to keep using NVIDIA hardware because of customer demand and capacity needs supports the view that NVIDIA’s ecosystem and supply chain remain hard to replace at scale today. 🎁 The broader AI buildout across hyperscalers and sovereign projects still relies heavily on NVIDIA GPUs and software, which ties into expectations for strong AI related demand over the next few years.  What To Watch Going Forward From here, it is worth tracking how often Amazon and other hyperscalers talk about the split between their own accelerators and NVIDIA GPUs in data center builds, and whether that mix shifts. Listen for comments on pricing, availability and total cost of ownership for NVIDIA systems versus in house chips, as well as any signs that major customers are standardizing key AI services solely on their own silicon. Updates on purchase commitments, export policy, and competitive responses from AMD and Intel will also help you judge how secure NVIDIA’s current position in AI data centers remains. To ensure you are always in the loop on how the latest news impacts the investment narrative for NVIDIA, head to the\ncommunity page for NVIDIA to stay updated on the top community narratives.  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.Valuation is complex, but we're here to simplify it.Discover if NVIDIA might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. 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