Andy Jassy Says Amazon's Chip Business Already Has $225 Billion in Commitments
Yahoo Finance ·
Amazon ( AMZN 1.92% ) CEO Andy Jassy put a striking number on one of his company's least-discussed businesses this spring. If Amazon's in-house chip operation were a stand-alone company that sold the chips it produces to outside buyers, he said on the company's first-quarter earnings call in April, its annual revenue run rate would be about $50 billion. The business as it actually runs today is no small thing either. Amazon's custom chip unit -- Graviton processors, Trainium artificial intelligence (AI) accelerators, and Nitro networking chips, all deployed inside Amazon Web Services (AWS) -- has an annual revenue run rate above $20 billion, growing at triple-digit percentage rates year over year. And customers have lined up. Jassy said in the company's first-quarter earnings call that it now holds more than $225 billion in revenue commitments for Trainium. Numbers like those suggest Amazon is building something bigger than an internal cost-saving project. Here's a closer look at the chip business, and what it could mean for the stock.
DYAX Investor Sentiment
Bullish (Long) 52% · Bearish (Short) 48%
485 participants
Related News
- Missed Out on Sandisk's 580% Rally? Here Are 3 Chip Stocks You Can Buy Now.
- Occidental Petroleum Cut Its Capital Spending by 8% for 2026. Should the Oil Giant Rethink Its Plans with Crude Prices Now Up 30%?
- Some of Berkshire's Newest Bets Aren't American. Greg Abel Bought 3 Japanese Trading Houses Last Quarter.
- K-OTC 대장주 LS전선 급락…장외시장 과열 신호탄 되나
- 미 의회 "애플도 中 메모리 쓰지 마라"…CXMT·YMTC 구매 금지 압박
- 中 Z.AI, 연매출 10억달러 눈앞…중국 AI 기업 첫 기록 나오나