By Adam Clark and Tae Kim
Nvidia stock was gaining early Tuesday after an Amazon.com executive pushed back against reports that it was pulling back on building artificial-intelligence infrastructure.
Nvidia shares were up 2.1% at $98.99 in early morning trading, just about in line with the Dow Jones Industrial Average, the S&P 500, and the Nasdaq Composite. Nvidia stock fell 4.5% on Monday.
The chip maker suffered after Amazon's AWS cloud business was reported on Monday to have delayed several new data-center leases. Analysts at Wells Fargo said the company had pulled back from its commitments for some co-location facilities, following similar moves at Microsoft.
"This is routine capacity management, and there haven't been any recent fundamental changes in our expansion plans," wrote Kevin Miller, vice president of global data centers at AWS, in a post on LinkedIn late Monday.
The shifts are more likely to be about reallocating internal resources rather than reducing investment, according to research firm TrendForce.
"However, growing geopolitical uncertainties and increasingly stringent export controls may prompt AWS and other major CSPs [cloud-service providers] to adopt a more cautious stance on capital expenditures -- potentially slowing the overall pace of AI infrastructure expansion," TrendForce analysts wrote.
On Monday, KeyBanc analyst John Vinh said he was more confident in Nvidia's ability to ship more volume of its upcoming Blackwell Ultra server later this year after the company switched circuit-board vendors.
Among other chip makers, Advanced Micro Devices has gained 0.4% and Broadcom has advanced 1.7% in early trading.
Write to Adam Clark at adam.clark@barrons.com
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April 22, 2025 11:01 ET (15:01 GMT)
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