AWS Deploys Record-Breaking Three Million NVIDIA GPUs in Cloud Infrastructure Expansion
Amazon's partnership with NVIDIA has just gotten even bigger. The two companies announced that AWS plans to deploy an additional two million NVIDIA GPUs between 2027 and 2028, bringing the total deployment to over three million units.
This expansion is a strategic move by AWS to enhance its global infrastructure for applications such as AI, scientific computing, and enterprise automation. With this massive investment in GPU power, AWS aims to stay competitive in the cloud services market.
However, Amazon's current Price-to-Sales (P/S) ratio is significantly elevated compared to its historical median of approximately 3.4x. This suggests that investors are pricing in high expectations for future growth, which may not be fully justified given the company's cash-flow-negative status.
According to GuruFocus' GF Value calculation, Amazon is currently overvalued by about 5.6% at its current price of $260.28.