Amazon Doubles Down on AMD: A Power Play That Could Reshape Both Tech Giants
Amazon’s latest move to bulk up its AMD stake isn’t just another corporate handshake—it’s a strategic chess move in the high-stakes semiconductor wars. Here’s why both stocks could feel the shockwaves.
The Chip Wars Heat Up
By deepening ties with AMD, Amazon Web Services gets sharper claws in the cloud computing arms race. Meanwhile, AMD gains a whale client just as it’s battling NVIDIA for AI supremacy. Talk about timing.
Wall Street’s Love-Hate Reaction
Analysts will spin this as ’synergistic’—because nothing gets a price target boost like corporate buzzwords. But make no mistake: this deal’s real currency is silicon, not spin.
Two tech titans walking into a data center? Sounds like the start of a joke—or a monopoly investigation. Either way, shareholders are laughing all the way to the bank... for now.
How the Position Affects AMZN and AMD Stock
Over the last couple of years, Amazon has invested $8 billion into an artificial intelligence (AI) start-up called Anthropic. Per the terms of their partnership, Anthropic uses Amazon’s cloud infrastructure, Amazon Web Services (AWS), to train its generative AI models. Since Anthropic has become a new pillar supporting AWS, the cloud infrastructure business has accelerated both revenue growth and operating margin. This is important, as these dynamics underscore that Amazon is already generating strong unit economics on its AI-related investments.
As for AMD, at press time, AMD’s forward price-to-earnings (P/E) multiple is 29. For context, the average forward P/E across the S&P 500 index is about 20. The company reported strong first-quarter 2025 results, beating analyst expectations with $7.44 billion in revenue—a 36% year-over-year increase—and non-GAAP EPS of $0.96, up 55%. Despite a slight sequential dip due to prior-year demand spikes, management expects growth to resume in H2 with new MI350 accelerators. Therefore, investor sentiment in AMD is up, especially following the Amazon position.
