Amazon Slams Brakes on Stock Price as Nvidia GPU Deployment Hits Three Million
Amazon's expansion of its GPU infrastructure has led to a significant increase in the company's investment in Nvidia processors. The e-commerce and cloud-infrastructure giant has added two million GPUs, bringing the total number of Nvidia processors to over three million. This move is part of Amazon's ambitious plan to capture the growing demand for AI computing power.
The additional GPUs will be deployed during 2027 and 2028, with a focus on supporting federal workloads, which currently account for only 5% of the new deployment. Nvidia's Vera processors and memory technology will also play a key role in Amazon's infrastructure expansion.
The stock market reacted to this news by hitting the brakes, with shares falling approximately 1.4% to $256.84 on Thursday morning. Analysts see this as a reflection of investors' concerns about Amazon's ability to keep these GPUs busy and profitable.