Key Stats for Amazon Stock
- Price change for Amazon stock in last 6 months: 18%
- $AMZN Stock Price as of Oct. 2: $252
- 52-Week High: $287
- $AMZN Stock Price Target: $331
Now Live: Discover how much upside your favorite stocks could have using TIKR’s new Valuation Model (It’s free)>>>
What Happened?
Amazon (AMZN) wants to move about $8 billion of Nvidia chips off its books. The Financial Times reported this Friday, citing people familiar with the matter.
Here is how the deal would work. Amazon would move thousands of Grace Blackwell chips into a special-purpose vehicle, or SPV.
The SPV would raise money from outside investors by issuing debt. Amazon would then lease the chips back from the SPV.
Amazon has held talks with investors in recent weeks to test their interest. It also plans to offer an equity stake of up to 10% in the vehicle.
Amazon bought or leased the chips. They are being installed in more than a dozen US data centers across five states. Nevada and Virginia are among them.
The report says the move could help Amazon take a more asset-light approach. In plain terms, Amazon would own fewer expensive chips directly. That could strengthen its balance sheet.
Amazon and Nvidia did not immediately respond to requests for comment.
See analysts’ growth forecasts and price targets for Amazon stock (It’s free) >>>
What the Market Is Telling Us About Amazon Stock
This looks like a financing story. It is not a sign of weak demand. Amazon stock is tied to a very large spending plan.
On the Q2 call, management said it expects about $220 billion in cash capex this year. Most of it supports AI and AWS. Quarterly capex alone was $53.1 billion.
Management also said higher memory costs pushed the number up from about $200 billion.
CEO Andy Jassy said that heavy spending will bring free cash flow headwinds in the short term. A deal like this could help ease some of that pressure.
The demand side still looks strong. AWS revenue grew 36.7% last quarter. Backlog reached $496 billion. AWS operating income was $16.6 billion.
Jassy said Amazon still won’t have enough capacity to meet demand in 2026, and he expects the same in 2027.
CFO Brian Olsavsky also said Amazon has many options to fund its growth. He noted it issued debt this year.
For investors, the key questions are simple. Will the deal close? And how will leasing the chips back affect costs? The report doesn’t answer those questions.
Until then, Amazon stock will likely keep trading on AWS growth and capex returns.
Any news on the SPV could shape how investors view Amazon stock. Smart funding could be a quiet plus for Amazon stock.
Estimate a company’s fair value instantly (Free with TIKR) >>>
So what is Amazon stock actually worth?
TIKR lets you forecast the future price of any stock in less than a minute. Just enter a few assumptions into TIKR’s valuation model and see what AMZN stock could be worth. Start from Wall Street consensus estimates, or adjust the inputs to reflect your own view of the business. It’s free to use.
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
