Amazon Adds 2 Million GPUs–and the Stock Falls

This article first appeared on GuruFocus.

Amazon.com (NASDAQ:AMZN), the e-commerce and cloud-infrastructure giant, expanded its Nvidia commitment beyond three million GPUsbut Wall Street still hit the brakes. Shares fell approximately 1.4% to $256.84 Thursday morning, based on the updated price shown in the chart and live market data. The message was sharp: investors see the AI opportunity, but they also see the enormous check Amazon must write to capture it.

AWS plans to deploy two million additional Blackwell Ultra, Rubin and Rubin Ultra GPUs during 2027 and 2028, on top of more than one million processors arriving from 2026. Another 100,000 GPUs will support secure federal workloads, while Nvidia’s Vera processors and memory technology will move deeper into AWS infrastructure. Amazon is not testing AI demand anymore. It is building for demand at industrial scale.

The chart puts that ambition into valuation context. Amazon’s $256.84 share price stands 4.17% above its $246.57 GF Value estimate, leaving less room for execution stumbles as capital spending accelerates. Reuters reported that Nvidia expects 70% revenue growth next fiscal year, strengthening the demand case. Now Amazon must keep those GPUs busy enough to outrun depreciation, electricity costs and the risk of expensive capacity sitting idle.