Cramer Urges Nvidia to Confront $50 Billion AI Chip Threat From Amazon, Alphabet

4 articles · Updated · CNBC · May 20

Hours before Nvidia reports fiscal 2027 first-quarter results, Jim Cramer said Jensen Huang must directly address rising competition from Amazon and Alphabet on the earnings call.
Cramer said a beat-and-raise is only the baseline; the bigger risk is appearing weak if Huang avoids discussing hyperscalers that are building in-house AI chips while still buying Nvidia hardware.
Amazon sharpened that pressure in April, saying its chip business grew 40% sequentially and would be running at $50 billion annually if sold as a standalone business.
Alphabet also highlighted its custom TPUs and Axion CPUs alongside Nvidia GPUs, underscoring a 'frenemy' dynamic as both companies expand their own compute stacks.
That competition is backed by huge infrastructure spending: Amazon kept its full-year capex outlook at $200 billion, while Alphabet raised 2026 capex guidance to $180 billion-$190 billion.

As giants like Google build their own silicon, can Nvidia’s software moat, CUDA, prevent a mass exodus?

Will the AI chip war be won by superior design or by controlling limited TSMC manufacturing supply?