Despite a highly volatile performance over the past month, Nvidia (NVDA) has recently taken some steps to keep investors excited about its future.
The artificial intelligence (AI) leader completed a successful week of product unveils and updates at the annual Nvidia GTC (global technology conference) 2025. This included the debuts of multiple highly anticipated GPUs (graphics processing units) and notable advances in robotic technology.
💰💸 Don’t miss the move: SIGN UP for TheStreet’s FREE Daily newsletter 💰💸
Right now, Nvidia and most of its big-tech peers are facing a highly complicated industry landscape. With President Donald Trump’s recent tariffs pushing down financial markets, most high-growth tech stocks are plunging amid high economic uncertainty.
However, that doesn’t mean these companies are not focused on growth or that they plan on scaling back innovation. Amazon (AMZN) recently revealed a plan to expand its share of a booming tech market that could severely impact Nvidia.
While Nvidia CEO Jensen Huang rolled out new products at Nvidia GTC 2025, a rival was working on a plan of attack.
Nvidia is facing an uncertain future as Amazon reveals ambitious plans
Over the past few years, the AI market has boomed in spectacular fashion, creating new opportunities for both investors and consumers. As they have tried to procure a share of it, many tech companies have struggled with one thing: competing with Nvidia.
The company most synonymous with the current AI revolution, Nvidia has benefited from providing GPUs that are widely considered to be the best available. While the rise of Chinese AI startup DeepSeek’s R1 model triggered a selloff for Nvidia and its peers, the company remains an AI favorite among Wall Street analysts.
Related: Analyst unveils startling Nvidia stock forecast amid tariffs
One reason for Nvidia’s success is the industry-wide reliance on its chips. However, other tech companies have focused on developing their own in a clear attempt to decrease their reliance on Nvidia’s highly priced GPUs, and Amazon seems to be getting close.
Amazon Web Services (AWS), the tech conglomerate’s cloud computing subsidiary, has revealed a new strategy that centers around luring Nvidia’s customers away.
According to The Information, it has already spoken to at least one company, claiming that AI servers powered by its Trainium chip can deliver the same quality as the Nvidia H100 but at only 25% of the cost.
For companies that don’t want to pay Nvidia’s extremely high prices for hardware, such an offer could be extremely enticing. TechRadar provided further context on these AWS AI chips, stating:
“Trainium is one of several in-house chips that Amazon has developed (alongside Graviton and Inferentia), built for training machine learning models in the AWS cloud, and offering a lower-cost alternative to GPU-based systems. Amazon’s silicon is not intended as a like-for-like replacement for Nvidia’s more advanced products, but it doesn’t need to be.”
More technology:
Jensen Huang shocks the world with Nvidia Quantum Day surpriseQuantum computing leader has blunt, 9-word take on Nvidia stockAn event that may save Nvidia is coming May 15
This pitch reportedly took place during Nvidia GTC 2025 week from March 17 to March 25. While Nvidia held panels and unveiled new products, AWS seized the opportunity to court one of its customers and offer a more cost-effective way forward.
A fierce AI rivalry could be brewing behind the scenes
For some time, experts have speculated that for all its growth and momentum, Nvidia would ultimately be unable to retain its share of the AI market. Other companies would inevitably develop more cost-effective options that could deliver similar results.
Related: AI CEO issues grave warning about the future of Nvidia
Now it seems that this may be playing out, as Amazon Web Services makes the case for why its own products can offer customers the same service as Nvidia’s, for substantially less money. If just a few customers opt to use servers powered by the Trainium chip, it could be a blow to Nvidia, similar to the launch of DeepSeek’s R1 model.
Matthew Kimball, a VP and principal analyst at Moor Insights & Strategy, praises the tech platform’s initiative. “What AWS is doing is smart,” he states. “It is telling the world that there is a cost-effective alternative that is also performant for AI training needs. It is inserting itself into the AI conversation.”
How Nvidia responds to this development will do much to determine how this new rivalry will play out in the coming months. If AWS continues to court its customers, though, Nvidia may have no choice but to lower prices on some of its AI chips to avoid losing its market share.
Related: Veteran fund manager unveils eye-popping S&P 500 forecast
