NVIDIA NASDAQ:NVDA, a designer of processors used for artificial intelligence and data-center computing, rose approximately 0.6% in Friday's regular-session trading as of 10:19 a.m. ET after Amazon NASDAQ:AMZN expanded its planned capital expenditure to $220 billion. Amazon, an e-commerce and cloud-computing company, increased its spending plan by 10% from $200 billion as demand for AI infrastructure strengthened. NVIDIA had traded as much as 1.6% higher earlier in the session.
Amazon Web Services reported 37% revenue growth, its strongest performance in more than four years. Chief Executive Andy Jassy said much of the cloud capacity expected during 2027, together with some scheduled for 2028, had already been reserved. Amazon is developing Trainium processors to provide customers with an alternative to externally supplied AI chips. However, Jassy reaffirmed the company's partnership with NVIDIA and said NVIDIA processors remain essential for many AWS customers.
Amazon's revised forecast adds $20 billion to its planned 2026 capital expenditure, expanding the potential market for processors, networking products and supporting infrastructure. The development is relevant to NVIDIA because spending by hyperscalers remains an important source of demand, even as those customers design more internal chips. Investors may nevertheless assess how Amazon divides future workloads between NVIDIA hardware and Trainium systems rather than assuming every additional investment dollar reaches one supplier. AWS capacity deployment and customer chip preferences may provide the next indication of how Amazon's spending increase translates into NVIDIA revenue.