Amazon Jumps on Expanded AWS Chip Deal, NVIDIA Slides Despite Strong Sales

Amazon's stock surged 4% after it announced an expanded partnership with NVIDIA to deploy 2 million additional GPUs for AI, agentic AI, and warehouse robotics.

The deal is a validation of AWS momentum, as second-quarter AWS revenue rose 37% year over year to $42.23 billion, its fastest growth in 18 quarters.

NVIDIA's stock, however, fell 4%, despite being the supplier selling those chips, due to a broad pullback in semiconductors and AI hardware.

The market is treating the deal as a sign of Amazon's growing dominance in the cloud computing space, with some traders focusing on capital intensity and depreciation pressure rather than AWS' growth.