Suche
Mein Konto
Analyst sees Amazon shares as a better choice
Analyst predicts cyclical downturn at NVIDIA - Is Amazon stock the better choice? Find out more about the current market assessment. 📉🔍 #NVIDIA #Amazon #stock market
Analyst sees Amazon shares as a better choice
Analysts are predicting a possible cyclical downturn for tech giant NVIDIA, despite its recent success in artificial intelligence. One analyst highlights that Amazon shares are seen as a more promising alternative. Compared to NVIDIA, Amazon shares have already increased by 20.44 percent this year and were most recently traded at a price of $183.00. NVIDIA, on the other hand, recorded an increase of almost 73.66 percent and was trading at $860.01 per share on April 15, 2024.
Analyst Gil Luria of D.A. Davidson warns of potential market and technology trends that could impact NVIDIA's revenue, leading to a cyclical downturn by 2026. He strongly believes that in the long term, companies will tend to invest in their own chips to reduce costs. The custom-made chips could provide a cost-effective alternative to NVIDIA's expensive GPUs.
According to Luria, Amazon will create a long-term price advantage by vertically integrating its own semiconductors. Although Amazon may still use NVIDIA processors this year, the company plans to switch to its own chips in the long term, which is seen as a strategic advantage. Additionally, Amazon's AWS cloud division is underrated due to its speed of innovation and custom chips compared to Microsoft's Azure cloud computing business.
Amazon's investments in data center infrastructure over the next 15 years could reach up to $150 billion, according to Luria, which could strengthen the company's competitiveness. The analyst highlights that Amazon's retail business will help optimize data center capital spending and boost its profit profile. Analysts recommend buying Amazon shares and predict the price potential for a significant increase.