Executives at tech giants Amazon (AMZN) and Nvidia (NVDA) said on Thursday that the construction of new data centers for artificial intelligence is not slowing down, even though some investors are worried that a possible recession could cause tech companies to cut back. Kevin Miller, Amazon’s vice president of global data centers, said at a conference that demand for data centers remains strong and is expected to keep growing in the coming years. He made it clear that Amazon hasn’t changed its long-term plans and expects demand to continue rising.
Some of these concerns came from a report by Wells Fargo earlier in the week, which claimed that Amazon Web Services might be pausing some of its data center lease agreements. The report didn’t say how big this pause was, but it led to fears that Amazon could be following Microsoft (MSFT), which recently slowed down some early-stage data center projects. Miller pushed back against this idea by saying that people are jumping to conclusions and reading too much into small signals about Amazon’s plans.
Nvidia shared a similar view. Josh Parker, the company’s senior director of corporate sustainability, said that the firm has not seen any slowdown either. He explained that the need for computing power and energy is only increasing with the rise of AI, and called earlier fears tied to the efficiency of China’s DeepSeek AI model a “kneejerk” reaction. Indeed, Jack Clark, co-founder of AI company Anthropic, said that the AI industry will need about 50 gigawatts of new power by 2027, which is the same as building 50 new nuclear plants.
Which Tech Stock Is the Better Buy?
Turning to Wall Street, out of the two stocks mentioned above, analysts think that NVDA stock has more room to run than AMZN. In fact, NVDA’s price target of $168.49 per share implies almost 58.6% upside versus AMZN’s 33.1%.
