Back to blog

Cooling Down Artificial Intelligence Is Not Easy – Amazon Comes Up with a Solution!

Due to the exponential expansion of artificial intelligence, over time, certain problems began to become apparent – from the energy capacity of data centers to the internal infrastructure of this technology. However, it represents an investment opportunity for investors, as every problem opens up space for a solution. Consequently, the company that has the most effective method also has the greatest potential for a return on investment for investors. Why Amazon?

Cooling Down Artificial Intelligence Is Not Easy – Amazon Comes Up with a Solution!

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.

amzn_us

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/2025/07/09/amazon-web-services-builds-heat-exchanger-to-cool-nvidia-gpus-for-ai.html

https://aws.amazon.com/blogs/machine-learning/aws-ai-infrastructure-with-nvidia-blackwell-two-powerful-compute-solutions-for-the-next-frontier-of-ai/

https://www.cnbc.com/2023/11/28/amazon-reveals-trainium2-ai-chip-while-deepening-nvidia-relationship.html

https://www.cnbc.com/2025/05/01/aws-q1-earnings-report-2025.html

Read more

Google Stock Near All-Time High – Will Earnings Fuel More Gains?

Google Stock Near All-Time High – Will Earnings Fuel More Gains?

During the second quarter, Google once again proved why it ranks among the technological leaders. With economic results that not only exceeded analysts' expectations, but above all showed the ability to move forward even in an extremely competitive environment, the company continues to represent a promising player in the investment portfolio in the eye of investors. In addition, the stock price is still below the absolute high, which is a much better entry into the market than in the case of stocks that are at their peak.*

Figma Eyes IPO – Should Adobe Be Concerned?

Figma Eyes IPO – Should Adobe Be Concerned?

As part of the initial public offerings, another promising company appears on the horizon. Figma, an innovative design design platform, is gearing up for an IPO that could generate up to $1 billion in revenue. The projected share price is in the range of $25 to $28, which could bring the final value up to $16 billion. [1] Figma is thus preparing for one of the biggest steps in its history, which will subsequently be available to retail investors. What is its advantage over the competition?

TSMC Shares Are Up Nearly 90% From This Year’s Low — A Better Option Than ASML?

TSMC Shares Are Up Nearly 90% From This Year’s Low — A Better Option Than ASML?

TSMC, the largest chip manufacturer in the world, surprised the market again with its Q2 financial results. The company reported revenue of $31.7 billion, an increase of 38.65% compared to last year. In addition, net profit reached $13.5 billion, an impressive 61% year-over-year growth. In addition, the quarterly results also beat analyst estimates and show that TSMC continues to effectively benefit from the growing demand for advanced chips, leading investors to ask, "TSMC or AMSL?"

Space as an Investment Opportunity: Rocket Lab Has Grown 1,100% Since 2024

Space as an Investment Opportunity: Rocket Lab Has Grown 1,100% Since 2024

From an investment point of view, the capital market offers many interesting opportunities, and not only those related to artificial intelligence. Investors often forget this, which does not provide their portfolios with a sufficient degree of diversification. In recent years, the space industry has also experienced a significant boom, as evidenced, for example, by the successes of a well-known company - SpaceX. However, this giant is out of reach for a retail investor, which is why attention is turning to Rocket Lab.