Amazon AWS Overvalued Amid NVIDIA GPU Expansion Plans
Amazon Web Services (AWS) has announced an extension of its collaboration with NVIDIA to deploy an additional 2 million NVIDIA GPUs between 2027 and 2028. This move underscores Amazon's strategic focus on AI infrastructure, particularly for scientific research and enterprise automation.
The stock ticker for Amazon.com Inc is AMZN, which currently has a Price-to-Sales (P/S) ratio of 3.61, slightly above its historical median of 3.43. However, earnings-based valuation metrics are less applicable due to the company's unprofitable and cash-flow-negative status.
GuruFocus' proprietary GF Value metric estimates Amazon's intrinsic value at $246.57, which is approximately 5.6% below the current market price of $260.28. This suggests a modest overvaluation, but it should be interpreted as a directional warning rather than a precise valuation target.