Nvidia and Amazon were added to the Dow Jones Industrial Average in 2024, replacing Intel and Walgreens Boots Alliance. In December 2024, a prediction stated Nvidia would be a better Dow stock to buy than Amazon for long-term investors.
Nvidia gained 38.9% in 2025, compared to just 5.2% for Amazon. Amazon was the worst-performing "Magnificent Seven" stock in 2025, underperforming Nvidia, Alphabet, Apple, Microsoft, Meta Platforms, and Tesla.
Amazon's non-AWS business achieved an operating margin of 4.1% in its most recent quarter. AWS made up 60% of Amazon's operating income for the nine months ended September 30, 2025, despite being less than a fifth of total sales.
AWS had 35.6% operating margins for that period. AWS growth has slowed in recent years amid competition from Microsoft, Alphabet's Google Cloud, and Oracle.
Nvidia's data center sales now make up around 90% of total revenue. The other 10% includes gaming, professional visualization, automation, and robotics markets.
At CES earlier this month, Nvidia showcased its new Rubin architecture. The architecture consists of six different chips designed for agentic AI, robotics, and autonomous driving.
Nvidia is releasing Rubin ahead of schedule. Deployments to hyperscalers, including AWS, are on track for the second half of 2026.
Nvidia continues to grow earnings rapidly. Rubin goes beyond GPUs with networking, interconnections, and CPUs for rack-scale readiness.
Amazon has a forward price-to-earnings ratio of 30.1, compared to 39 for Nvidia. The prediction still favors Nvidia over Amazon due to its growth potential.
If Nvidia's data center business cools off, new opportunities in other areas could offset a slowdown. Amazon depends heavily on AWS, with limited room for margin expansion in e-commerce.
The Motley Fool Stock Advisor analyst team identified 10 best stocks for investors to buy now, and Nvidia was not one of them. The team's total average return is 955%, compared to 196% for the S&P 500.
Daniel Foelber has positions in Nvidia and Oracle and has short March 2026 $240 calls on Oracle. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Intel, Meta Platforms, Microsoft, Nvidia, Oracle, and Tesla.