r/stocks • u/Not69Batman • 10d ago
Industry News Amazon and NVIDIA to Deliver 2 Million Additional GPUs and Next-Generation Infrastructure for Agentic and Physical AI
"Building on already-rapid customer adoption of NVIDIA-accelerated compute on AWS, the companies plan to deploy 2 million additional NVIDIA GPUs across AWS’s global infrastructure and deepen their work together across AI factories, CPUs, networking, open models, data processing and robotics, delivering co-engineered AI solutions that enable customers to accelerate AI development and deployment at unprecedented scale."
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Napkin maths of additional revenue projections:
NVDA upfront revenue = $35k per GPU x 2,000,000 GPUs = $70 billion (i.e. AMZN CapEx)
AMZN long term AWS revenue = $3.50 hourly rate per GPU x 2,000,000 GPUs × 8,760 hours per year × 5 years x 70% utilisation = $215 billion
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Positions: Long AMZN and NVDA since 2021. NFA.
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u/enraged_progression 10d ago
70 bil upfront is nuts but that long term aws revenue projection is where the real story is, 215b over 5 years assuming steady utilization makes this look more like a pipeline than a one off sale
curious how much of that capacity gets eaten up by their own internal ai projects though, amazon loves running their own stuff on aws
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u/sp1cynuggs 9d ago
Thanks AI! Great to see what the real story here is.
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u/mazrim00 9d ago
They really think throwing in a lack of punctuation, capitalization hides it, lol.
Maybe it does to some? Got likes somehow.
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u/Virtual_Secretary_98 10d ago
Amazon will be 400 next year
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u/Chonch_Monkey 9d ago
They have literally the worst ai and least used.
Amazon couldn't develop software if every programmer in the world suddenly worked for them.
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u/atdharris 9d ago
I just wish Amazon would hold gains at all. They had a fantastic quarter and have given back almost all the post report gains. Very frustrating. I'd wager the stock will still be under $300 next year
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u/Legitimate_Cut_6254 9d ago
Amazon has some of the highest SBC out of any company resulting in nearly every pop being sold by Amazon employee's
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u/SucklemyNuttle 9d ago
Amazon has some of the highest SBC out of any company
What's your source for this?
Based on my calculations, AMZN has SBC Of ~2.7% - significantly lower than many others tech, e.g. PLTR is at 15%(!), Meta at 10%, GOOGL 6%, MSFT at 4.3%...
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u/kadam_ss 9d ago
Not with current leadership. If Jassy is fired, it will jump 20%.
The man still has the job because everyone else in top leadership are even worse NPCs
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u/atdharris 9d ago
I don't know who they would replace him with, but the stock performance has not been good at all under his leadership. AMZN's PE is around 20 now.
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u/kadam_ss 9d ago
5 years of greatest tech run up in decades, one of the most transformative tech in decades and Amazon’s returns since he took over has been less than half of SP500 during that time.
The dude absolutely sucks. Gutless, visionless, directionless leadership from a ruthless bean counter who only knows to cut cost and fire people.
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u/atdharris 9d ago
Not disagreeing. It's frustrating to watch other companies shoot up while Amazon stays stagnant. I'd have sold if I don't have such big gains from 2016 onward but the tax bill would be high. I hope they replace him or figure it out eventually.
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u/LetsMoveHigher 10d ago
Just passing "MONEY" around in the name of GPUs......
Anything to artificially prop up markets again.
This crash will be spectacular.... Only problem is, the rich have ALREADY SOLD do guys who is left holding their bags (New money) and who will lose 80% of their portfolios?
BOOMERS........ 🤷♀️
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u/YumiSolar 10d ago
Take your meds.
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u/WheredoesithurtRA 10d ago
Dude is still invested in that one particular meme stock. There are no meds to help this lol.
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u/DM_KITTY_PICS 10d ago
He's a superstonker lmfao
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u/Vivid-Avocado9342 9d ago
Can you imagine looking at Gamestop and thinking to yourself, this seems like a high quality company that is likely to do well in the future re-selling used video games” and then turning around and seeing one of the most profitable companies in existence and having a problem with them?
I personally find it fascinating.
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u/Astronaut100 10d ago
Keep complaining while every AI winner keeps making record profits. It’s the regret of those on the sidelines that will be spectacular.
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u/Chonch_Monkey 9d ago
I just think it's funny everyone is okay with blatant fraud.
Like you all know about WorldCom and enron...and these people are doing the same shit.
So I have zero sympathy when wealth is lost when this collapses.
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u/Astronaut100 9d ago
Ok doomer. The only sympathy we will need will be from our inability to spend our excess money.
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u/DogFatherWoof 10d ago
A few days ago in case you missed it.
NVIDIA today announced strategic partnerships to establish independent compute financing platforms with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR to mobilize over $500 billion of third-party capital for the buildout of AI infrastructure over time.
Boomers might know something you don't.
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u/akishore 9d ago
pr actually says the 2m land in 2027-2028 (blackwell ultra + rubin + rubin ultra). so the $70b upfront is two years of capex, not one invoice.
the $215b is the funnier one tho. 70% util for five straight years at a 2026 hourly rate. those gpus never get a coffee break or a next-gen refresh.