Key Highlights
Nvidia (NASDAQ: NVDA) shares surged 7.8% on Friday, reflecting investor optimism following Amazon’s fourth-quarter financial results, which indicated robust performance despite some concerns. Amazon reported net sales of $213.4 billion for the quarter, a 14% year-over-year increase. Amazon Web Services (AWS) revenue grew 24% year over year to $35.6 billion, with a significant backlog of $244 billion, driven by strong demand for AI technologies.
In 2026, Amazon plans to spend a record $200 billion on capital expenditures, up 51%, predominantly for AWS. This is expected to benefit Nvidia significantly, as AWS continues to rely on Nvidia’s GPUs, despite using its homegrown processors. AWS chief Matt Garman noted that the demand for Nvidia’s A100 chips remains high, indicating a strong ongoing partnership between the two companies.
