Amazon is reportedly restructuring its AI hardware financing by moving about $8 billion of NVIDIA Grace Blackwell chips into a special purpose vehicle that would issue debt to outside investors, purchase the chips, and lease them back to Amazon, keeping the hardware in place and retaining up to 10% of the SPV's equity for Amazon.

The Financial Times, via Investing.com, describes talks with investors in recent weeks about this potential deal.

The arrangement would allow Amazon to adopt a more asset-light balance sheet by offloading expensive semiconductors to external investors.

Amazon’s Q3 guidance signals continued revenue growth, with projected net sales of roughly $197–$202 billion and operating income of about $22.5–$26.5 billion, hinging on whether AI infrastructure spend translates into higher profits and cloud demand.

Investors are advised to conduct thorough due diligence due to mixed signals on valuation and insider activity despite apparent undervaluation and strong financial metrics.

The coverage from the Financial Times is the basis for the report, with StockTwits sentiment showing bearish tones on the day of the article.

Disclaimer notes that the content is informational and not financial advice, and no stock positions are mentioned by TIKR.

CEO Andy Jassy signaled ongoing capacity constraints for 2026 and 2027, underscoring continued investment needs.

GuruFocus notes a significant valuation discount for NVIDIA and suggests potential upside for investors given its strong fundamentals.

The Financial Times piece discusses depreciation risk and residual values of advanced AI GPUs, shaping hyperscalers’ financing needs.

AWS remains the core earnings engine, contributing about a fifth of revenue and roughly 60% of segment operating income; growth in cloud and AI workloads is critical, while capacity expansion risks unused capacity and delayed cash returns.

The report portrays a financial and accounting strategy in progress rather than a completed transaction, indicating discussions rather than a finalized deal.