Nvidia (NVDA) Stock Gains as $82B Revenue Stream Emerges from AWS and China Deals

Quick Overview

• Nvidia shares advanced 1.6% in premarket hours Wednesday, trading at $177.97
• Arm Holdings unveiled the Arm AGI CPU for data centers, projecting $15B yearly revenue by 2031
• The Arm chip doesn’t directly challenge Nvidia’s GPU dominance but may overlap with Nvidia’s Vera CPU lineup
• Amazon Web Services committed to acquiring 1 million Nvidia GPUs for AI inference workloads, valued above $50 billion
• Nvidia restarts H200 chip manufacturing and develops China-compliant Groq 3 variants, potentially adding $32B in annual sales

Nvidia shares moved higher during early Wednesday sessions, brushing aside concerns about Arm Holdings’ entry into the AI chip arena. The development coincided with two significant revenue opportunities that had escaped widespread attention.

NVIDIA Corporation, NVDA

Arm revealed its inaugural data center CPU on Tuesday evening—the Arm AGI CPU—identifying Meta Platforms and OpenAI among its initial clients. During an after-hours investor presentation, Arm outlined aggressive financial targets, forecasting approximately $15 billion in yearly CPU revenue by 2031 as part of a comprehensive $25 billion revenue objective.

Arm shares surged 12% in premarket activity following the disclosure.

However, industry observers were swift to clarify that this new processor doesn’t directly challenge Nvidia’s flagship GPU offerings.

Benchmark Research’s Cody Acree noted that Arm’s strategy is “less about catching up to the accelerator wave and more about inserting itself deeper into the architecture that governs how AI infrastructure actually runs.”

Jensen Huang, Nvidia’s CEO, appeared in Arm’s promotional content, characterizing their nearly twenty-year collaboration as the backbone for “one seamless platform, from cloud to edge to AI factories.”

The competitive dynamic becomes more nuanced regarding Nvidia’s recently launched Vera CPUs, introduced during last week’s developer conference. J.P. Morgan’s Harlan Sur highlighted potential overlap between Arm’s chip and that product category. He additionally noted Meta’s existing agreement with Nvidia for Arm-architecture CPUs—complicating the competitive landscape.

Amazon Web Services Makes Massive Nvidia Commitment

Separately, Amazon Web Services revealed plans to procure 1 million Nvidia GPUs dedicated to AI inference capabilities. The announcement caught many off guard—AWS had previously promoted itself as housing “the largest cluster of non-Nvidia chips in the world” following its October 2025 Indiana data center deployment.

The agreement encompasses a “broad mix” of six supplementary Nvidia chip variants, including the recently announced Groq 3 inference processors, alongside Nvidia networking equipment. Industry estimates place the complete package well beyond $50 billion, with completion targeted by late 2027.

This singular agreement accounts for approximately 25% of Nvidia’s total 2025 annual revenue.

Chinese Market Revenue Resumes

CEO Jensen Huang confirmed last week that Nvidia is resuming manufacturing of its H200 processor—engineered to meet U.S. export control requirements—specifically for Chinese customers. Industry sources suggest a China-compliant Groq 3 variant is also under development.

Nvidia had incorporated zero Chinese data center sales into its Q1 projections. Throughout 2025, those revenues approximated $8 billion quarterly—roughly $32 billion on an annualized basis, representing about 15% of total 2025 revenue.

Together, the AWS contract and China market reentry represent over $82 billion in revenue streams absent from Nvidia’s current financial forecasts.

Nvidia shares traded 1.6% higher at $177.97 during premarket hours Wednesday, rebounding from a 0.3% decline in the previous session.