Jim Cramer Isn’t Worried by Analyst Downgrading Amazon.com (AMZN)

Group 1 - Jim Cramer has been closely tracking Amazon.com, Inc. (NASDAQ:AMZN)'s GPU spending, suggesting that over-reliance on in-house Trainium AI chips may be detrimental to the company [2] - Cramer highlighted that price-performance is a crucial metric for Amazon's cloud business, AWS, and acknowledged that concerns about growth were partly due to Amazon underspending on NVIDIA [2] - Despite a downgrade by Rothschild Redburn from Buy to Hold with a $250 price target, Cramer remains optimistic about AWS's growth and believes that the market dynamics will present buying opportunities [3] Group 2 - Cramer emphasized that Amazon has not spent enough on GPU deployments, which require significantly higher capital compared to previous cloud infrastructure [3] - The discussion also touched on the competitive landscape, indicating that a few companies are striving to dominate the market, reminiscent of historical industrial revolutions [3] - While acknowledging Amazon's potential, there is a belief that other AI stocks may offer better returns with lower risk [3]