Amazon Expands Nvidia GPU Purchase by 2 Million, Stock Experiences Decline

Key Points

• Amazon Web Services (AWS) will deploy an additional 2 million Nvidia GPUs in 2027 and 2028, increasing its total commitment to over 3 million GPUs.

• AWS revenue surged 37% year over year in the second quarter, marking the fastest growth since 2021, bringing in $42.2 billion.

• Amazon’s capital spending estimate for 2026 has risen to approximately $220 billion.

Amazon Web Services (AWS) announced plans to expand its deployment of Nvidia GPUs by 2 million units, set for 2027 and 2028, effectively tripling its previous commitment of over 1 million GPUs made five months ago. This decision comes amid a surge in demand for AI-powered computing resources.

In the second quarter of 2026, AWS reported a 37% year-over-year revenue increase, reaching $42.2 billion, its highest growth rate since 2021. In addition, Amazon has raised its estimated capital expenditures for 2026 from $200 billion to $220 billion, reflecting investments primarily directed towards AI and related technologies.

Despite these positive developments, Amazon’s stock saw a slight decline of approximately 1.5% following the announcement. In contrast, Nvidia shares rose nearly 9%, as the commitment indicates continued growth potential for Nvidia’s products while raising concerns about Amazon’s spending and cash flow management.