Why Amazon Stock Jumped Friday
It seemed like Amazon (NASDAQ: AMZN) was the one major cloud computing stock that didn't participate in the market rally Thursday that was ignited by Nvidia's earnings report. But that changed Friday: As of 1:50 p.m. ET, Amazon shares had risen by 5.2%.
Thursday's rally was triggered after Nvidia shocked investors with how rapidly the push into artificial intelligence (AI) is moving. That would seemingly also be good news for Amazon Web Services (AWS), as the AI trend should drive higher demand for its computing power and cloud storage offerings. Investors seem to be recognizing that a day late. During the session, Amazon stock hit its highest level in 2023.
Nvidia also blew past analysts' expectations for quarterly revenue and with its guidance for how much it expects sales to accelerate due to the move to include its AI offerings in consumer and enterprise use cases. In the company's earnings conference call, management mentioned surging demand from several well-known tech companies, but the names mentioned didn't include Amazon.
Source Fool.com
