Short-seller Andrew Left thinks Amazon just showed that it's the biggest threat to Nvidia's chip dominance
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- Andrew Left thinks Amazon represents a major threat to Nvidia's AI chip dominance.
- Left unveiled a $300 price target for Amazon stock after Andrew Jassy's latest letter to investors.
- The short-seller, who said he's long Amazon, sees a trillion-dollar business forming within Amazon.
It's been a while since Andrew Left was shorting Nvidia, but he still thinks the company might be in trouble.
The short-seller flagged Andy Jassy's 2025 letter to shareholders, in which the Amazon CEO highlighted the company's ambitious AI expansion plans, claiming they will change the economics of the AWS platform. His statement included a prediction that customers will start to shift away from AI chips built by Nvidia.
"We have a strong partnership with NVIDIA, will always have customers who choose to run NVIDIA, and we will continue to make AWS the best place to run NVIDIA," Jassy wrote. "However, customers want better price-performance."
Left, who years ago had flagged Nvidia as a likely candidate to dominate the AI market, made it clear that he agrees with Jassy that a shift is coming. In an X post posted by his firm Citron Research, he described the letter as a "gamechanger" and set a $300 price target for Amazon stock, an increase of about 30% from Thursday's price. Shares are up 35% in the last 12 months.
Left has a long position in the stock, he told Business Insider. "[It's] been a primary holding on and off for years."
He pointed to investors' hesitations about what they have perceived as overspending on AI, stating that Jassy's plans signal that the high capex is about to pay off.
"Today, Jassy just showed you what that capex built," Left wrote. "The most serious threat to NVIDIA's semiconductor dominance ever created."
Left is bullish on the Trainium4, a new AWS accelerator chip, which Jassy said in his letter is almost already sold out.
Amazon already has a market cap of more than $2 trillion, but Left said he believes that as AWS expands further into the chip space, it will give Amazon a unique edge in the tech sector.
"This is another trillion dollar company hidden inside Amazon," he said. "This does not exist in a single sell side model. Not one."