Lynx Equity Strategies' Jahanara Nissar said yesterday's weakness in NVIDIA (NASDAQ: NVDA), driven by speculation that Amazon (NASDAQ: AMZN) was looking to install internally developed AI chips inside the Alexa speakers, was misplaced. Nissar finds no basis for this report.

"Amazon’s Alexa (Echo and Dot) speakers are powered by SoC from Mediatek in most models, as is widely known," she comments. "We find no reason to believe Amazon is going to undertake the time-consuming and expensive task of designing its own chips to replace either the SoC or to replace NVDA’s GPU-compute chips inside Amazon’s data centers. We believe, NVDA’s proprietary Cuda is installed in bare metal on Amazon servers, and is therefore deeply entrenched in Amazon’s data centers."