AMZN vs NVDA: Cloud Infrastructure Giant vs AI Chip Monopoly: AI Score, Valuation, Performance and Upside
Amazon and NVIDIA occupy different but interconnected positions in the AI value chain. Amazon is the largest cloud infrastructure provider and one of NVIDIA's biggest customers, while also developing competing Trainium chips. NVIDIA is the dominant GPU supplier powering the AI buildout across all major clouds. Amazon offers diversified exposure with cloud, commerce, and advertising; NVIDIA offers concentrated AI infrastructure upside.
Use this AMZN vs NVDA comparison to evaluate two critical layers of the AI economy: Amazon captures value as the largest cloud platform deploying AI services to enterprises, while NVIDIA captures value as the dominant supplier of the accelerated computing hardware underpinning that deployment.
NVDA holds the edge across 5 of 5 key metrics in this comparison. NVDA leads on both 1-year return (+37.92%) and forward P/E quality (14.21x vs 25.64x for AMZN), a relatively favorable combination of momentum and valuation. NVDA leads on both revenue growth (105.90%) and operating margin (66.24%), suggesting a stronger fundamental setup on both dimensions. Analyst consensus implies meaningfully more upside for NVDA (+48.66%) than for AMZN (+22.99%).
Human Wall Street analysts' price targets, typically implying a ~12-month view — a separate signal from this site's own AI Prediction Signal further down the page, which is a 5-/30-day machine-learning forecast based on price history alone.
- Want diversified exposure to cloud, e-commerce, and advertising rather than a single AI hardware cycle
- Believe AWS will maintain cloud leadership and successfully monetize AI workloads through Bedrock and Trainium
- Prefer a company with multiple margin expansion levers across retail, advertising, and cloud
- Are comfortable with heavy near-term capex in exchange for long-term platform dominance
- Want the most direct exposure to total AI infrastructure spending across all cloud providers
- Believe GPU demand will remain supply-constrained and custom ASICs will not meaningfully displace NVIDIA
- Are comfortable with higher concentration risk in exchange for 70%+ gross margins and faster revenue growth
- Value NVIDIA's CUDA developer ecosystem as a durable moat that custom chips cannot easily replicate
| Metric | AMZN | NVDA |
|---|---|---|
| AI scorei | 62.0 | 88.3 |
| AI ranki | #149 | #4 |
| Latest closei | $258.51 | $230.36 |
| 1M returni | -5.82% | +2.86% |
| 6M returni | +21.09% | +26.12% |
| 1Y returni | +11.27% | +37.92% |
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | AMZN | NVDA |
|---|---|---|
| 1Y ago | $10.96K (+9.6%) started 2025-09-08 | $13.69K (+36.9%) started 2025-09-08 |
| 5Y ago | $14.84K (+48.4%) started 2021-09-09 | $104.26K (+942.6%) started 2021-09-09 |
| 10Y ago | $68.02K (+580.2%) started 2016-09-09 | $1.6M (+15896.7%) started 2016-09-09 |
Hypothetical — past performance does not guarantee future results.
| Metric | AMZN | NVDA |
|---|---|---|
| Market capi | $2.87T | $5.25T |
| Trailing P/Ei | 21.42 | 27.47 |
| Forward P/Ei | 25.64 | 14.21 |
| Price/Salesi | 3.49 | 23.66 |
| EV/Revenuei | 3.87 | 17.23 |
| Analyst targeti | $327.67 | $323.42 |
| Target upsidei | +22.99% | +48.66% |
| Metric | AMZN | NVDA |
|---|---|---|
| Revenue growthi | 19.60% | 105.90% |
| Earnings growthi | 242.30% | 127.80% |
| EPS growthi | +242.30% | +127.80% |
| FCF margini | +0.42% | +13.80% |
| Operating margini | 13.69% | 66.24% |
| Profit margini | 17.44% | 63.66% |
| ROIC proxyi | 30.56% | 117.21% |
| Return on equityi | 30.56% | 117.21% |
| Dividend yieldi | N/A | 0.46% |
| Betai | 1.45 | 2.21 |
| Debt/equityi | 45.62 | 16.97 |
| Current ratioi | 1.03 | 4.59 |
| Quick ratioi | 0.84 | 2.92 |
Over the past year, AMZN and NVDA have moved weakly in the same direction (correlation of 0.24), based on daily returns.
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | AMZN | NVDA |
|---|---|---|---|
| 1Y | Growthi | +9.61% | +36.87% |
| CAGRi | +9.64% | +36.97% | |
| Volatilityi | 34.34% | 38.00% | |
| Sharpe ratioi | 0.31 | 0.90 | |
| Sortino ratioi | 0.49 | 1.35 | |
| Max drawdowni | 21.74% | 20.22% | |
| Current drawdowni | 8.98% | 2.28% | |
| Avg drawdowni | 8.82% | 8.77% | |
| Ulcer Indexi | 10.43% | 10.09% | |
| Max daily dropi | 5.55% | 6.20% | |
| Max wkly dropi | 14.09% | 10.72% | |
| 5Y | Growthi | +48.39% | +940.68% |
| CAGRi | +8.22% | +59.81% | |
| Volatilityi | 36.46% | 52.02% | |
| Sharpe ratioi | 0.28 | 1.08 | |
| Sortino ratioi | 0.41 | 1.67 | |
| Max drawdowni | 55.73% | 66.34% | |
| Current drawdowni | 8.98% | 2.28% | |
| Avg drawdowni | 18.15% | 16.72% | |
| Ulcer Indexi | 23.56% | 24.20% | |
| Max daily dropi | 14.05% | 16.97% | |
| Max wkly dropi | 20.35% | 22.20% | |
| 10Y | Growthi | +580.16% | +15636.29% |
| CAGRi | +21.14% | +65.87% | |
| Volatilityi | 33.11% | 50.05% | |
| Sharpe ratioi | 0.61 | 1.17 | |
| Sortino ratioi | 0.90 | 1.79 | |
| Max drawdowni | 56.15% | 66.34% | |
| Current drawdowni | 8.98% | 2.28% | |
| Avg drawdowni | 12.86% | 15.47% | |
| Ulcer Indexi | 18.19% | 22.78% | |
| Max daily dropi | 14.05% | 18.76% | |
| Max wkly dropi | 20.35% | 28.36% |
| Category | AMZN | NVDA |
|---|---|---|
| Company | Amazon.com, Inc. | NVIDIA Corporation |
| Sector | Consumer Cyclical | Technology |
| Industry | Internet Retail | Semiconductors |
| Core business | Global e-commerce marketplace operator and the world's largest cloud infrastructure provider via AWS. AWS offers a full suite of AI services including Bedrock for foundation models and custom Trainium chips for AI training and inference. Also operates a $55B+ advertising business and an expansive logistics network. | Dominant designer of GPUs and accelerated computing platforms for AI training and inference. Data center segment generates over 85% of revenue through AI chips (Blackwell, Rubin), networking infrastructure, and the CUDA software ecosystem. Amazon is both a major NVIDIA customer and a competitor via Trainium. |
| Investor focus | AWS growth rate and AI workload contribution, advertising revenue acceleration, Trainium chip adoption versus NVIDIA GPUs, retail margin expansion, and overall free cash flow trajectory. | Data center revenue growth, next-generation architecture ramp, gross margin defense above 70%, custom ASIC competitive dynamics, and the expansion from training to inference workloads. |
- AWS is the largest cloud platform with 30%+ market share and a growing portfolio of AI services and custom silicon
- Diversified revenue model spanning cloud, e-commerce, advertising, and subscription services reduces single-segment risk
- Advertising business generates $55B+ annually at high margins, becoming a meaningful profit contributor alongside AWS
- Over 80% market share in AI training accelerators with the CUDA ecosystem creating deep developer lock-in
- 70%+ gross margins reflect exceptional pricing power driven by demand exceeding supply
- Rapid architecture cadence (Blackwell to Rubin) sustains the technology lead over competitors and custom ASICs
- AWS faces intensifying AI workload competition from Microsoft Azure and Google Cloud
- Massive data center and logistics capex exceeding $75 billion annually pressures near-term free cash flow
- Trainium adoption remains modest compared to NVIDIA GPU demand, limiting custom silicon's competitive impact
- Amazon's Trainium, Google's TPU, and Microsoft's Maia represent growing custom ASIC competition in inference
- Revenue concentration in data center AI creates cyclical vulnerability to hyperscaler capex fluctuations
- Export controls on advanced chips to China reduce the total addressable market for highest-end products
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