Amazon Just Committed $200 Billion to Capital Expenditures. This Is the AI Stock That Will Benefit Most in 2026.

Perhaps the biggest astonishment successful Amazon's (NASDAQ: AMZN) latest results was the further $200 cardinal it plans to walk -- mostly connected Amazon Web Services (AWS) -- this year. That fig blew good past expert expectations and shows conscionable however overmuch Amazon and companies similar it are betting connected AI.

It's truly nary wonderment why. AWS was acold and distant Amazon's fastest-growing gross watercourse arsenic of its latest quarter, with income up 24% twelvemonth implicit twelvemonth for the 2025 4th quarter.

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While Amazon does plan immoderate of its hardware in-house, adjacent Jeff Bezos' brainchild doesn't person each the wealth and expertise it needs to make its ain AI hardware ecosystem. And, similar astir different companies progressive successful the AI industry, Amazon needs to enactment with Nvidia (NASDAQ: NVDA) to bring its goals to fruition.

So, I expect Nvidia volition beryllium 1 of, if not the biggest beneficiary of Amazon's $200 cardinal investment.

Nvidia doesn't request overmuch successful the mode of an introduction. The institution was astir apt the biggest banal marketplace communicative successful 2025, particularly erstwhile it broke retired supra $5 trillion successful valuation precocious past year.

Its graphics processing units (GPUs) are the preferred hardware for each the astir precocious AI programs retired there. And portion Nvidia is facing immoderate contention now, namely from Alphabet's (NASDAQ: GOOG) Tensor Processing Units (TPUs), it remains the ascendant AI hardware subordinate with astir 92% marketplace share.

Amazon and Nvidia person a alternatively cozy narration stretching backmost 15 years, and it seems to beryllium a mutually beneficial one. AWS' AI infrastructure runs connected Nvidia hardware, and the 2 companies person heavy integrated their technology.

In December of past year, Amazon and Nvidia expanded their concern with AWS, adding enactment for Nvidia's NVLink Fusion AI infrastructure. Amazon besides plans for its Trainium4 spot to integrate and play bully with Nvidia's products.

The concern enlargement includes the integration of Nvidia's bundle into AWS' AI suite, meaning AWS developers volition beryllium capable to physique their ain Nvidia-based AI programs and agents.

In short, the 2 companies are heavy integrated, and with Amazon spending truthful overmuch connected AI, you tin stake Nvidia volition sorb a bully chunk of that cash, though Nvidia was hardly hurting earlier Amazon's planned spending surge.