Nvidia holds an impressive 80% share of the AI chip market, designed through its advanced graphics processing units (GPUs) utilized across various sectors, including healthcare and tech. In contrast, Amazon is strategically positioning itself to capture the AI landscape by developing its own training chips, Trainium and Inferentia, and partnering with AI startup Hugging Face, which recently integrated its workloads with AWS.
Amazon’s investments in AI are substantial, such as its $4 billion investment in another AI startup, Anthropic, and a planned $11 billion for data centers. While Amazon’s stock trades at approximately $179, close to its all-time high of $189, its earnings per share (EPS) have surged by 181% in the past year, suggesting the company is currently undervalued in the AI space.
As the competition heats up, Amazon’s ongoing investments and innovations highlight its potential to emerge as a formidable player in AI, challenging Nvidia’s dominance in the long run.
