Is Amazon Starting an Nvidia-Style Run?

Nvidia (NASDAQ: NVDA) has rocketed higher since the earlier days of the artificial intelligence (AI) boom, surging a mind-boggling 1,500% over the past five years. This is for a very logical reason. The company has built an AI chip empire, offering the most powerful compute to drive the development and use of AI. And this has translated into record-level earnings quarter after quarter.

Nvidia continues to gain, rising about 25% so far this year. But it's not the only company on track to win in the current and upcoming stages of the AI boom. Another tech company -- one that's also leading in the AI space -- has seen its shares gather momentum in recent months, too.

Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »

I'm talking about Amazon (NASDAQ: AMZN), which has climbed more than 30% since the end of March. Is Amazon starting an Nvidia-style run? Let's find out.

Amazon's AI story

So, first, let's talk about how Amazon fits into the AI story. Most of us know Amazon as an e-commerce giant, and this business is benefiting from AI in a big way -- the technology, used in various ways across the company's fulfillment network, for example, helps it gain efficiency. And AI is also helping Amazon better serve customers through AI-powered virtual shopping assistants.

But where Amazon truly is leading in AI is through its Amazon Web Services (AWS) business. AWS is the world's biggest cloud service provider, and AI has supercharged growth in recent quarters. Customers have been rushing to AWS for AI and non-AI services, prompting the company to announce $200 billion in capital spending for 2026 -- in order to keep up with this demand. Amazon said that much of this capital spending will turn into revenue in 2027 through 2028 -- so this investment is actually linked to customer commitments that already exist.

So, what exactly does AWS offer its AI customers? A variety of products and services, from chips and systems to a fully managed platform called Amazon Bedrock that allows companies to build AI applications and agents to suit their needs.

The chips business is particularly interesting as Amazon has seen explosive demand in recent quarters. Amazon offers the chips of market giants such as Nvidia, but it also sells its own in-house-developed chips, such as the Graviton central processing unit and Trainium, an AI chip. Here, let's zoom in on these in-house offerings. Nvidia says that these chips are delivering a $20 billion annual revenue run rate -- and this would be even higher if the company actually offered these chips to others beyond AWS, as do chip companies like Nvidia.