Amazon and Marvell Technology’s Semiconductor Growth
Amazon’s custom AI chip business is booming, reporting nearly 40% quarter-over-quarter growth in Q1, with an annual revenue run rate exceeding $20 billion. CEO Andy Jassy indicated that if Amazon’s chip business operated independently, it could achieve a $50 billion annual revenue run rate due to demand for its Trainium chips. The latest Trainium3 chip is reportedly almost sold out and shows a 30%-40% improvement in price-to-performance compared to its predecessor, with over $225 billion in revenue commitments for Trainium.
Marvell Technology, which collaborates with Amazon to design custom AI processors and networking components, is also experiencing substantial growth. The company’s revenue in fiscal 2026 reached $8.2 billion, a 42% year-over-year increase, and is projected to grow revenue by 30% in the current fiscal year. Analysts anticipate that Marvell’s earnings could reach $7.56 per share in fiscal 2029, presenting a potential stock price of $325, marking a 91% upside.
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