Nvidia Shares Hold Steady On Amazon’s Endorsement of AI Partnership But Retail Remains Uncertain

Nvidia (NVDA) shares remained under pressure on Friday, slipping 0.5% in mid-day trading, despite Amazon.com Inc. (AMZN) addressing concerns about its AI chip strategy during its fourth-quarter earnings call.

The stock was also the third highest trending ticker on Stocktwits.

“Most AI compute has been driven by Nvidia chips, and we obviously have a deep partnership with Nvidia and will for as long as we can see into the future,” Amazon CEO Andy Jassy said during the call.

This could push back against speculation that Amazon's collaboration with Marvell Technology (MRVL) could threaten Nvidia’s dominance in AI hardware.

On Thursday, Amazon indicated it planned to increase its spending by 27% or $105 billion — mostly on AI data centers. 

However, that figure was overshadowed by Alphabet (GOOGL), which announced a 57% increase in capex to $75 billion.

Earlier, Meta Platforms (META) Chief Executive Mark Zuckerberg indicated data-center spending plans of $60 billion to $65 billion in 2025 — a 59% increase at the midpoint.

Nvidia does not disclose its customer list, but its chips are widely believed to be a core component of AI infrastructure for Amazon, Alphabet, Meta, and Microsoft (MSFT).

Nvidia Sentiment and Message Volume on Feb.7 as of 12:50 p.m. ET | Source: Stocktwits

On Stocktwits, retail sentiment around Nvidia dipped to ‘neutral’ from ‘bullish’ a day ago while chatter remained at ‘high’ levels.

Some investors welcomed Jassy’s remarks as a vote of confidence in Nvidia’s long-term relevance, while others anticipate further downside leading into the company’s earnings report later this month.

On Thursday, Morgan Stanley acknowledged growing concerns over U.S. export controls and long-term risks tied to China’s DeepSeek AI, but noted that near-term demand for Nvidia’s high-end chips remains strong. 

It noted that conversations with cloud industry sources suggest that major AI players are sticking to their purchasing plans. 

The brokerage reaffirmed its “Top Pick” status on Nvidia, maintaining an ‘Overweight’ rating with a $152 price target.

Despite climbing 87% over the past year, Nvidia’s stock is down more than 5% year-to-date.

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