After the speeches Huang made, it is obvious the entire tech world is buzzing. Huang made some remarkable announcements that not only caught Amazon’s attention but also sent some shocks across the investor community. Not only did Nvidia outperform expectations by a staggering $44.1 billion in revenue and earnings in the first quarter of the year but it also further reinforced his position as the AI powerhouse as well as the semiconductor giant. A report issued at the end of May suggested that OEMs are positioned for tremendous cash flows in the near future, undoubtedly benefiting both Nvidia and Amazon in the long run.

Nvidia’s Earnings Blow Past Expectations and Reinforce AI’s Growth Trajectory

With a staggering surge of 69% surpassing their last year’s earnings, Nvidia’s financial results have blown all expectations out of the water. At the beginning of the quarter, Nvidia eyed $43.3 billion in revenue but ended up hitting a jaw dropping $44.1 billion, making Huang a household name at Nvidia. As if things couldn’t get better, Huang also announced a $0.96 adjusted EPS on the stocks rather than the expected $0.93. This ease in performance was noticed earlier in the year when there were concerns surrounding the price of Nvidia’s chips. The emergence of the Chinese AI platform DeepSeek also fuelled these worries.

Additionally, the attempt to regulate the export of advanced semiconductor technologies to China created further issues. Even with these obstacles, Nvidia’s growth and resilience proved how vital these chips are when it comes to AI applications. The company’s CEO, Jensen Huang, sees AI as a technology that is set to change the world. He argued that it will have an impact on every industry including healthcare, transportation, manufacturing, software, and even retail. Huang maintained that the world is currently just at the start of the improvements that AI can offer.

Nvidia is continuing to focus on expansion and growth, particularly with the Blackwell Series of GPUs. Currently, they are most sought after by cloud giants such as Amazon and Microsoft. During the latest earnings call, Colette Kress (Nvidia’s CFO) reported that Microsoft was using Blackwell GPUs at an astonishing rate, utilizing over tens of thousands which made up over 70% of Nvidia’s data center sales during the quarter. To address the needs of generative AI, especially regarding inference tasks, the company continues to innovate more powerful chips such as Blackwell Ultra. This is the phase where AI models translate their understanding into the application on actual datasets. This cycle of innovation ensures Nvidia is the go-to provider of AI infrastructure.

Amazon’s Cloud Dominance Positions It to Capitalize on AI Growth

Amazon Web Services (AWS) remains the largest provider of cloud services across the globe. AWS is one of the primary hosts for the world’s generative AI applications and supports much of the world’s AI infrastructure. In an earlier statement, Amazon’s CEO, Andy Jassy, mentioned a use case where generative AI is integrated into virtually every application, enabling inference as a core component similar to computation, storage, or databases. He is predicting the emergence of a tiered AI system:

• Bottom layer: Self-developed large language models (LLMs) by the developers for use in powerful AI platforms.

• Middle layer: Clients making use of LLMs provided by Amazon.

• Top layer: Custom AI solutions designed for low resource usage delivered to small companies.

Why Nvidia’s Success Is a Catalyst for Amazon’s Future Growth

The Amazon cloud platform and Nvidia’s next-gen AI hardware has a powerful synergistic relationship that serves as a great advantage for both companies. AWS, along with other cloud providers, will furnish the infrastructure for the development, deployment, and scaling of applications powered by generative AI for years to come. Nvidia’s advanced GPUs help provide a greater AI computing power to AWS clients, which in turn, allows Nvidia to thrive, thus fueling Amazon’s growth. Jensen Huang’s enthusiasm for AI has been remarkably in tune with Andy Jassy’s AWS vision, fortifying the argument that the cloud will be the nerve center of the AI economy. This suggests that a large portion of the AI-reliant cloud market expansion will be seized by Amazon.

The Stock Market Reaction and Investment Implications

Nvidia’s stock price as of May 29, 2025, was $135.13 with a market cap of approximately $3.3 trillion, a decline of 2.92% on the trading day while Amazon’s stock is trading at $205.01. Both businesses still have strong short-term fundamentals despite the trimming of mid-term high short open interest positions in Amazon. Nvidia’s earnings aided by Huang’s optimism continue to support the long-term thesis not only for Nvidia, but for Amazon as well considering their AI and cloud computing intertwined mutual futurism. The AWS segment, already a multi-hundred-billion-dollar revenue business, is poised to capture even more value as AI penetrability increases.

Future Outlook for Investors of Amazon

Amazon’s ongoing AI investments and cloud leadership position it to potentially benefit as AI adoption continues expanding. With more businesses and developers leveraging generative AI and incorporating AWS into their frameworks, its market share is expected to grow substantially. As envisioned by Jassy, Nvidia’s hardware advancements supporting the layered AI ecosystem give room for enormous scalability to even serve customers from small startups to large enterprises.

The broad-based clientele of diverse solutions makes Amazon more resilient while increasing growth potential. Amazon’s strategy to develop budget-friendly, proprietary AI chips reflects its effort to serve diverse client needs across multiple market segments. At the same time, it shows how Amazon relies on Nvidia’s premium GPUs for their high-end clientele. This two-sided strategy further cements Amazon’s competitive advantage in the cloud AI market.

Conclusion

Nvidia’s strong earnings and AI expansion have drawn attention from the market, including those watching Amazon’s long-term AI positioning. Moreover, Amazon’s primary cloud competitor, Nvidia, offers strong financial performance and market leadership when it comes to AI chips with the increasing adoption of cloud-based generative AI. Nvidia is positioned as the largest cloud vendor through AWS, putting them into a strong position to take advantage of this situation. Market observers are closely following Nvidia and Amazon’s developments as they continue collaborating to advance AI-powered cloud technologies, which is expected to add a tremendous amount of value for the shareholders. For both companies, the opportunity to leverage the ongoing technological transformation triggered by them is enormous.