Amazon went from zero to hero of the Magnificent Seven in just a few days. First, there were explosive gains on Thursday night, with the stock up 9.6% the next day. And on Monday, the company closed a big cloud deal with OpenAI, sending the stock up another 4.5%. Amazon emerged as the worst performer of the 7 MAG stocks in 2025 in last week’s earnings release. It’s now up more than 16% year-to-date and hit another all-time high on Monday. AMZN 5D Mountain Amazon’s Performance Over 5 Sessions “Amazon has completely refuted” concerns about slowing growth in the company’s cloud division, Amazon Web Services, Jim Cramer said Monday on “Squawk on the Street” shortly after it was announced that Amazon had secured a $38 billion commitment from OpenAI to use its AWS cloud infrastructure for additional computing power. This partnership shows that ChatGPT creators are no longer solely dependent on Azure, Microsoft’s cloud service. Under the agreement, OpenAI will immediately begin running workloads on AWS, leveraging hundreds of thousands of Nvidia graphics processing units (GPUs) across its U.S. data centers. We’ll start with existing capacity and expand over time as AWS plans to build new infrastructure specifically for OpenAI. “This deal is very exciting,” Jim said, adding that AWS is “no longer a powerless giant pitiful against other companies.” AWS growth increased from 17.5% in the previous quarter to 20% in the latest quarter. “Let’s try to increase this growth rate even further,” Jim predicted. He has said for weeks that he believes in Amazon CEO Andy Jassy and supports the stock. Amazon emphasized its own chips, but “a lot of that is because they have a lot of NVIDIA computing on board,” Jim said Monday during a morning assembly for club members. AWS already has a huge number of Nvidia chips, specialized processors that power AI models like ChatGPT. These chips, known as GPUs, enable the rapid training and execution of large-scale AI systems. Normally, a two-session rally like this would cut Amazon down. But as Jim wrote in Sunday’s column, this AI boom is different. You can’t think of Mag 7 as a group. We must treat each as its own story. Jim said that “there are too many Mag 7s on the market, get out” is a money-losing false narrative, and that was certainly playing out on Monday. While the AWS deal is small, $38 billion is small in this age of AI spending, and it emphasizes that OpenAI is moving toward a multicloud future. Until January, Microsoft was OpenAI’s exclusive cloud partner. It then transitioned into a precedential right of refusal, which expired last week. Microsoft reaffirmed its role in the newly recapitalized OpenAI, pledging $250 billion from OpenAI to continue its expansion on Azure. OpenAI also has cloud agreements with Google and Oracle. The deal with AWS comes at a time when Amazon is doubling down on cloud capacity expansion. During Amazon’s third-quarter earnings call last week, the company said it is focused on accelerating its AWS capacity, noting that it is on track to double its overall capacity by the end of 2027. This capacity consists of power, data centers, and chips, primarily custom silicon, Trainium, and Nvidia. (Jim Cramer’s charitable trusts are long AMZN, NVDA, MSFT; see here for a complete list of stocks.) As a subscriber to Jim Cramer’s CNBC Investment Club, you will receive trade alerts before Jim makes a trade. After Jim sends a trade alert, he waits 45 minutes before buying or selling stocks in his charitable trust’s portfolio. If Jim talks about a stock on CNBC TV, he will issue a trade alert and then wait 72 hours before executing the trade. The above investment club information is subject to our Terms of Use and Privacy Policy, along with our disclaimer. No fiduciary duties or obligations exist or arise from your receipt of information provided in connection with the Investment Club. No specific results or benefits are guaranteed.
