Quick Read – Amazon (AMZN) has built a custom silicon operation generating approximately $50 billion in annual revenue run rate, growing at over 100% year over year, with Graviton CPUs and Trainium AI accelerators competing against Broadcom (AVGO), Advanced Micro Devices (AMD),…
d Intel (INTC) in the AI infrastructure market. – Amazon’s vertical integration strategy of designing chips optimized for its own AWS cloud infrastructure creates a competitive advantage by reducing vendor dependence, lowering costs, and giving the company a built-in customer base while potentially expanding external sales of Trainium processors to compete directly with Nvidia and AMD. – The analyst who called NVIDIA in 2010 just named his top 10 stocks and Amazon wasn’t one of them. Get them here FREE
Artificial intelligence has turned semiconductor stocks into the market’s biggest winners. Nvidia (NASDAQ:NVDA), Broadcom (NASDAQ:AVGO), Advanced Micro Devices (NASDAQ:AMD), and other chipmakers have captured investors’ attention as demand for AI infrastructure continues to climb. But what if one of the fastest-growing chip businesses isn’t actually a semiconductor company at all?
That’s the question investors should be asking about Amazon (NASDAQ:AMZN). Most shareholders still view Amazon as an e-commerce and cloud computing giant. Yet beneath the surface, the company has quietly built a semiconductor operation that is becoming one of the most important pieces of its long-term AI strategy — and the numbers are getting too large to ignore.