WS #15236
Amazon has offloaded approximately $8 billion in Nvidia chips to a Special Purpose Vehicle, a move that raises questions about the sustainability of current AI capex spending levels and potential liquidity constraints in the sector. This development, combined with options activity showing significant call selling on Micron ($MU) and put buying on Lululemon ($LULU), suggests a cooling in near-term AI hardware demand expectations. For Nvidia, this acts as a dampener on the bullish narrative, introducing a 'credit crunch' risk to the AI infrastructure build-out, while potentially benefiting competitors or alternative chip suppliers if Amazon diversifies its supply chain.
Amazon Nvidia SPV and AI Capex Stress
Amazon has offloaded approximately $8 billion in Nvidia chips to a Special Purpose Vehicle, a move that raises questions about the sustainability of current AI capex spending levels and potential liquidity constraints in the sector. This development, combined with options activity showing significant call selling on Micron ($MU) and put buying on Lululemon ($LULU), suggests a cooling in near-term AI hardware demand expectations. For Nvidia, this acts as a dampener on the bullish narrative, introducing a 'credit crunch' risk to the AI infrastructure build-out, while potentially benefiting competitors or alternative chip suppliers if Amazon diversifies its supply chain.