Amazon.com, Inc. (AMZN) Needs To Open Its Wallet To NVIDIA, Says Jim Cramer

We recently published 10 Stocks Jim Cramer Discussed As He Blasted China’s Hostility Towards The US. Amazon.com, Inc. (NASDAQ:AMZN) is one of the stocks Jim Cramer recently discussed.

Amazon.com, Inc. (NASDAQ:AMZN)’s shares are flat year-to-date after they dipped by a whopping 9.6% after the firm’s latest earnings report. The shares fell after the firm’s latest quarterly earnings report saw it post 17.5% growth for its cloud computing business, which significantly lagged Microsoft’s 39%. Cramer discussed the cloud growth and shared key insights about why Amazon.com, Inc. (NASDAQ:AMZN) might be struggling to attract customers to its cloud computing business:

“Azure, I think it might even be four, five percent. Meaning 39 get knocked back to [34, 35% growth]. Yeah so then Amazon doesn’t look as stupid and horrible as everybody says with Amazon Web Services falling behind. A lot of companies do write, younger companies want want to write on chat [ChatGPT], they want to write on OpenAI. But Amazon did this deal yesterday with OpenAI that no one even talked about that makes it so people are more likely to stay with Amazon Web Services.

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“[On AWS losing cloud share] I think that’s because Amazon has not opened up its wallet to NVIDIA. . . .they’ve been spending money. . .their own chips, which aren’t as good and people are going away from them. They’re being penny wise and pound foolish there. . . David,  they’re own chips are inferior to NVIDIA. . .Penny wise, pound foolish at Amazon.”

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Disclosure: None. This article is originally published at Insider Monkey.