NVDA Shares: Amazon denies reports of suspending orders for Nvidia superchips

Despite explaining the news that had negative consequences for Nvidia (NASDAQ:NVDA) NVDA stock fell slightly ahead of today’s earnings report. As it turned out, Amazon (NASDAQ:AMZN) did not suspend orders for the semiconductor giant’s most advanced chip “Grace Hopper”.

Before, Financial Times. stated that Amazon Web Services (AWS) has stopped ordering the so-called “superchip”. Instead, the business unit – which represents the world’s largest cloud service provider – was expected to wait for Nvidia’s latest Blackwell processor. The tech giant announced Blackwell at a GPU technology conference.

At the time of the report’s publication, Amazon had not commented on the matter. Recently, however, an AWS spokesperson said Reuters that the transition from Hopper to Blackwell only applies to the Ceiba Project. This project concerns a supercomputer that both companies are working on jointly. However, AWS will continue to acquire Hopper chips to support the unit’s other services.

Leaving no room for misinterpretation, the spokesman stated as follows:

“To be clear, AWS has not held back any orders from Nvidia. In our close collaboration with Nvidia, we jointly decided to migrate Project Ceiba from Hopper GPUs to Blackwell GPUs, which provide a leap in performance.

NVDA stock still faces big questions

Before Amazon clarified the matter, some experts expressed concerns about NVDA stock. In particular, Morgan Stanley analysts warned their clients that there could be a “potential air pocket” in the product cycle. This means other large companies may hold off on Hopper orders while they wait for Blackwell, creating an uneven demand trajectory.

While these clarifications are seemingly good news for NVDA stock, the market remains mused about the underlying company. There is certainly no question about the importance of a steadfast technician. However, after a series of solid profits, contrary to increasing expectations, the risk of possible failure becomes high.

For supporters of NVDA stock, the main thesis centers on artificial intelligence (artificial intelligence). Experts say that generative AI can increase productivity, making processors that support this innovation highly desirable. Moreover, AI now has major implications for supporting other non-tech industries such as energy and energy.

On the other hand, even with Amazon’s clarification, other businesses may reduce their orders on the Hopper platform, knowing that a better version is just around the corner. Moreover, Ross Gives of Traders Agency stated in an interview: Lisa’s business that betting on NVDA stock right now would be a “dumb gamble.” Given its massive growth, Nvidia offers a lot of risk and probably little upside.

On the day of publication Josh Enomoto did not hold (directly or indirectly) any positions in the securities referred to in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com Publishing guidelines.