Amazon faces challenges in a market focused on artificial intelligence. Despite a recent deal with the U.S. government, the company’s stock continues to decline.
Amazon and Nasdaq 100: Current Status
Amazon's shares have risen just 5.5% in 2025, while the Nasdaq 100 has increased by 13%. As a result, Amazon finds itself in the lower tier of Nasdaq 100 performers. The immediate outlook for the company's shares is dimming, with them trading at a significant discount to the market.
Comparing Amazon Web Services with Competitors
Amazon Web Services (AWS) is showing slowed growth, raising concerns about losing market share compared to other cloud services such as Microsoft Azure and Google Cloud. AWS reported a 17% growth in Q2, which is far behind Azure's 39% and Google Cloud's 32%.
Chip Leaders Transitioning
Arm Holdings has hired Rami Sinno, a former AI chip leader at Amazon, to work on its own chips. This move indicates shifts in the chip market, where Arm plans to expand its developments in response to increasing demand for AI accelerators and tailored silicon solutions.
Amazon faces significant challenges amid fierce competition in the artificial intelligence technology market. The slowdown in AWS growth and leadership changes in chip development impact the company’s image, emphasizing the need for adaptation to new conditions.
