Andy Jassy Just Made a Move That Should Excite Micron and Broadcom Investors

Amazon (AMZN) and NVIDIA (NVDA) expanded their partnership, with Amazon ordering 2 million additional NVIDIA GPUs, including Blackwell Ultra, Rubin, and Rubin Ultra models, for delivery in 2027-2028. The deal extends beyond hardware, encompassing AI collaboration and infrastructure. Amazon also reported a $25B annual revenue run rate for its own chips, with $225B in Trainium commitments. The partnership strengthens both companies' AI strategies, with NVIDIA targeting $1T in Blackwell and Rubin r

Broadcom (AVGO) is down 23% from its June peak due to AI infrastructure concerns, but its latest quarterly report shows strong growth. The company's data center chips, used by Alphabet and OpenAI, are becoming best-in-class. Broadcom's revenue grew 86% year-over-year, driven by AI semiconductor sales. CEO Hock Tan predicts AI revenue could reach $115 billion in fiscal 2027 and double in fiscal 2028. The stock trades at a P/S ratio of 20.2, but its forward P/S is 10.1.

Broadcom (AVGO) reported strong Q3 FY2026 results, with $29.59B revenue (up 85.5% YoY) and $13.09B net income. CEO Hock Tan forecasted AI-related chip sales growing from $2.6B in FY2022 to $230B by FY2028, driven by demand from Google, Anthropic, OpenAI, and Meta. Broadcom secured supply chain components and capacity to meet this demand, with major customers planning significant deployments of AI accelerators.

U.S. stocks fell as August PPI data and rising oil prices increased Fed rate hike expectations. Nvidia and Micron declined, while Apple gained. Treasury yields rose, impacting equity valuations. The S&P 500 dropped 0.58%, Nasdaq 0.65%, and Dow 0.60%. Traders see a 70% chance of a Fed rate hike next week.

Broadcom (AVGO) stock fell 6.9% in three months, underperforming the S&P 500, after fiscal Q4 2026 revenue guidance missed expectations. AI revenue grew to $16.7B in Q3 2026, 56% of total revenue. Management guided AI revenue to $115B in 2027 and $230B in 2028, citing secured supply but potential bottlenecks in land, power, and components. Gross margin is expected to decline to 73% in Q4 2026 due to memory content in XPUs.

Amazon Leo, a division of Amazon, signed six more Ariane 64 launches with Arianespace, totaling 24 missions through 2031. The deal was announced at the International Space Summit in Paris, which Blue Origin and other US aerospace companies boycotted due to White House discouragement. Amazon Leo's reliance on European launch infrastructure contrasts with Blue Origin's absence, highlighting commercial dependencies. The summit also saw €20 billion in investments and contracts, with discussions on E