Amazon Shares Edge Higher on Record Cloud Deal Despite Slump in Trading Volume to Eighth

Market Snapshot

, 2025, , which ranked the stock eighth in daily trading activity. The modest price gain followed a significant $38 billion cloud computing deal with OpenAI, announced the previous week, . The stock’s performance reflects market optimism about Amazon Web Services (AWS) securing a major long-term contract amid intensified competition in the AI infrastructure sector.

Key Drivers

The $38 billion multi-year agreement between AWS and OpenAI represents a pivotal strategic win for Amazon, addressing concerns about its cloud business lagging behind Microsoft and Google. Under the deal, AWS will supply OpenAI with hundreds of thousands of Nvidia GPUs, including the GB200 and GB300 accelerators, to power AI model training and operations. This partnership underscores AWS’s ability to scale high-performance computing infrastructure, a critical differentiator in the AI race. .

The deal also marks a strategic shift for OpenAI, which has historically relied on Microsoft’s Azure cloud. By diversifying its cloud partnerships, OpenAI signals its push for operational independence ahead of a potential initial public offering. For Amazon, this aligns with CEO ’s emphasis on AWS as a “backbone” for frontier AI ambitions, reinforcing the division’s competitive positioning. , the fastest pace since 2022, indicating improved momentum in a sector where Microsoft and Google had previously outpaced Amazon.

Market reactions highlighted the deal’s significance. , closing at a record high. The move validated AWS’s capabilities at a time when demand for AI-driven computing resources is surging. Analysts at Bank of America reiterated a “buy” rating for Amazon, citing the deal as a catalyst for revenue growth, . The partnership also bolsters AWS’s dual AI chip strategy, which caters to varying client needs for performance and cost efficiency.

However, the transaction has raised questions about the sustainability of AI infrastructure spending. , including deals with Oracle and Microsoft, has drawn concerns about a potential industry-wide bubble. Despite these risks, the AWS-OpenAI agreement is seen as a vote of confidence in Amazon’s ability to deliver scalable, reliable infrastructure. .

Long-term implications for Amazon hinge on its capacity to meet OpenAI’s demands without overextending resources. The company will need to invest heavily in data centers, power, and chip supply chains to fulfill the contract, which could temporarily pressure margins. Yet, the agreement aligns with Amazon’s broader strategy to dominate the AI infrastructure market, a sector projected to grow exponentially. With AWS now partnering with two of the leading foundation model developers—OpenAI and Anthropic—Amazon is well-positioned to benefit from the industry’s rapid expansion, even as competition intensifies.