Amazon (NASDAQ: AMZN) surprised investors when it shared its artificial intelligence (AI) spending plans for 2026. The tech giant is budgeting $200 billion for capital expenditures this year, nearly a $70 billion increase from 2025. A large portion of Amazon's new data center capacity coming online over the next couple of years will include Nvidia (NASDAQ: NVDA) GPUs. But a growing portion of Amazon's spending appears to be going toward another group of chipmakers, including one that investors can buy righ ...

Shares of Amazon (NASDAQ: AMZN) plunged on Friday after the company disclosed it would ramp up capital expenditures to $200 billion this year. Amazon is betting big on AI infrastructure: "...we are monetizing capacity as fast as we can install it," said Amazon CEO Andrew Jassy in the fourth-quarter earnings call. While the jury is still out on whether Amazon's prolific AI spending will pay off in the long run, some of that spending will go toward a business that isn't getting much attention from investor ...

Core Insights - Intel's market share in the processor segment has dropped to its lowest level since 2002, leading to a 4% decline in its stock price [1] - Arm's global shipment share increased from 10.8% to 13.6%, while AMD's share decreased from 22.1% to 21.1% [1] - The semiconductor industry has seen a rebound due to the US-China tariff truce and the growth of AI collaborations [1] Group 1: Market Dynamics - Intel's market share fell from 67.1% to 65.3%, indicating a gradual shift in the competitive landscape [1] - AMD's stock rose by approximately 6% following a $6 billion stock buyback plan despite a decline in market share [1] - The stock prices of AMD and Arm have increased by 19% and 13% respectively in May, while Intel's stock has seen a slight increase of 12% year-to-date [1] Group 2: Product Developments - AMD is developing an Arm-based SoC, codenamed "Sound Wave," for Microsoft's Surface laptops, moving away from traditional x86 designs [3] - Microsoft is advancing towards the Windows on Arm (WoA) platform, influenced by its collaboration with Qualcomm [3] - The potential introduction of Arm-based SoCs could enhance AMD's efficiency compared to existing x86 designs [4] Group 3: Arm's Ambitions - Arm aims to increase its share in the global data center CPU market from 15% to 50% by the end of 2025, focusing on AI servers [8] - Major cloud service providers like Google and Microsoft are beginning to adopt Arm's technology for their data center processors [9] - Arm is also developing its own CPUs for large cloud providers like Meta, which could significantly impact the server CPU market [10]