Sam Badawi
LIVE Amazon Earnings Review and More | Late Night with Sam
10/31/2025, 6:04:52 AM
Economic Summary
- Amazon (AMZN) reported AWS growth around 20%, above the 18–19% threshold that investors feared, which materially supported the stock in the earnings reaction.
- CapEx is accelerating toward AI and custom silicon: the speaker cited Amazon spending run-rates and an annual CapEx increase (discussed ~$90B year-to-date and ~$125B full-year), implying heavier investment to compete with Microsoft (MSFT) in cloud and AI infrastructure.
- ASICs and custom silicon (Google TPUs, Amazon Tranium/Inferentia/Graviton) are reshaping cloud economics by lowering client costs and creating a hardware-software moat, benefiting chip vendors like Marvell (MRVL) and Broadcom (AVGO).
Bullish
- AMZN AWS revenue grew ~20%, beating expectations and supporting the stock.
- Rising CapEx toward AI infrastructure and custom silicon strengthens cloud moats and long-term growth.
- Chip designers like MRVL and AVGO benefit from increased demand for ASICs and AI hardware.
Bearish
- AWS legacy East Coast infrastructure strain could be a broader, ongoing problem for Amazon (AMZN).
- Market is in a rapid 'breakneck' rally that is vulnerable to sharp pullbacks.
- Trades like BMNR and CleanSpark (CLSK) are highly technical and fundamentally uncertain.
Bullish tickers
AMZNMRVLAVGONVDAAMDGOOGL
Bearish tickers
AMZNBMNRCLSK
AMZN
1 price targets
200
Bullish
AWS grew ~20% and heavy AI-focused CapEx plus custom silicon investments support future cloud leadership.
Bearish
Legacy infrastructure strains and growth below ~18–19% could push the stock lower (speaker warned sub-$200 scenario).
MRVL
Bullish
Designer of chips that benefit from increased AI infrastructure spending and after-hours strength noted.
Bearish
Exposure to cyclical semiconductor demand and competition could pressure results.
AVGO
Bullish
Broadcom benefits from demand for data-center and AI infrastructure components.
Bearish
High valuation and exposure to enterprise spending cycles are risks.
NVDA
Bullish
NVIDIA GPUs remain central to general-purpose AI training and cloud compute workloads.
Bearish
Valuation and potential supply/demand shifts present downside risk.
AMD
Bullish
AMD GPUs are a core supplier for general compute AI workloads alongside NVIDIA.
GOOGL
Bullish
Google's TPUs are key application-specific chips powering products like Gemini and search.
INTC
Bullish
Still a major incumbent in server CPUs and enterprise data centers.
Bearish
Losing cost/efficiency advantages to cloud providers' custom silicon (e.g., Graviton).
MELI
Bullish
Held as a core long-term position by the speaker; not sold.
META
Bullish
Speaker added to Meta on a dip and views it as a core holding.
HOOD
Bullish
Mentioned that the speaker has not recently added to Robinhood positions.
BMNR
1 price targets
51
Bullish
Historically shows positive correlation with Ethereum; can rally when crypto assets rise.
Bearish
Sold around $51 due to technicals; highly uncertain fundamentals and strong crypto correlation.
CLSK
Bullish
Can be a tactical trade tied to cryptocurrency market strength.
Bearish
CleanSpark trades are highly dependent on technicals and crypto price action.
People mentioned
Mackenzie