English
Slovak
Czech
Hungarian
Italian
Polish
Slovenian
External solutions? Not!
At the beginning of the planning of the cooling system, AWS considered establishing external cooperation, specifically with providers of liquid-based solutions, but in the end, it turned out that technically neither would be able to meet the internal requirements for scalability and efficiency. Dave Brown, vice president of computing and machine learning at AWS, commented on the situation: "Some solutions could work for smaller volumes, but they simply wouldn't be enough for our scale." In order to meet the set goals, AWS urgently needs a much more flexible system that will allow the company to cool even with high volumes of data and calculations, thus thinking a step ahead from an investment point of view. The answer to the combination of challenges is the revolutionary In-Row Heat Exchanger technology, or IRHX for short. A complementary and equally important factor is the ability to integrate technology into already established data centers, which is undoubtedly key in reducing renovation costs.
Nvidia as a stress test
When choosing the hardware for the application, Amazon aimed directly at the market leader. Ultimately, this means that by meeting the criteria of a computing system called P6e, containing up to 72 Nvidia Blackwell GPUs, the performance of IRHX is easily confirmed. Based on this, it can also be expected that the broader market will not remain cold to the latest AWS progress and will require its capacity, which could traditionally be reflected in Amazon's quarterly numbers.
Growth of fundamentals, growth of stocks
The launch of IRHX is not only a technological but also a financial step forward for Amazon. By developing its own infrastructure, AWS becomes less dependent on third-party supplies, which will lead to improved margins and overall efficiency in the long run, with the division already achieving its highest operating margin since 2014 in the first quarter. Following this, it is crucial to add that structurally, AWS is responsible for most of the Amazon's revenue.
Source: Trading Economics*
Looking to the future
In conclusion, it can be said that with the latest innovation, AWS is once again leapfrogging its competitors. In general, the share price is largely dependent on the performance of a given company in terms of economic results, and therefore it can be expected that Amazon, especially its investors, has a bullish path ahead of it for the coming period. [1] Moreover, for now, Amazon's share price is below the absolute maximum, which for now represents the potential to buy at a bargain valuation compared to entering the market at the peak of price performance.*
* Historical figures are not a guarantee of future returns.
[1] Forward-looking statements represent assumptions and current expectations that may not be accurate or are based on the current economic environment, which is subject to change. These statements do not guarantee future performance. Forward-looking statements involve risk and uncertainty by their nature because they relate to future events and circumstances that cannot be foreseen, and actual developments and results may differ materially from those expressed or implied in any forward-looking statements.
Warning! This marketing material is not and should not be construed as investment advice. Data relating to the past are not a guarantee of future returns. Investing in foreign currency can affect returns due to fluctuations. All securities trades can lead to both profits and losses. Forward-looking statements represent assumptions and current expectations that may not be accurate or are based on the current economic environment, which is subject to change. These statements do not guarantee future performance. InvestingFox is a trademark of CAPITAL MARKETS, o.c.p., a.s., regulated by the National Bank of Slovakia.
Sources:
https://www.cnbc.com/2025/05/01/aws-q1-earnings-report-2025.html
